Speaker 1: From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed.
Speaker 3: Ludlove live from San Francisco. This is Bloomberg Technology coming
Speaker 3: up full markets, courage ahead as stocks push higher amid
Speaker 3: fading recession fears, plus Warner Brothers plunges after a nine
Speaker 3: point one billion dollar right down and after spending nearly
Speaker 3: sixty days in space, NASA is working on a contingency
Speaker 3: plan to bring the star Liner crew home. Let's get
Speaker 3: right to financial markets, and I'm looking at them as
Speaker 3: that one hundred on a four day basis, it's interesting
Speaker 3: what's happening in the long run. That's actually Warner Brothers Discovery.
Speaker 3: So let's go there. Then that's a nice story for
Speaker 3: the day. We're down nine point three percent, nine point
Speaker 3: four percent. Look, the story is really clear. Nine point
Speaker 3: one billion dollar write down on the legacy TV networks.
Speaker 3: And the issue with that, or the story with that,
Speaker 3: is traditional linear TV is not valued as it was
Speaker 3: when Warner Brothers merged with Discovery because everyone's gone to streaming.
Speaker 3: Let's bring in Bloomberg's Hannah Miller, who's been covering the
Speaker 3: story and Hannah, it's a big number, it's overshadowed earnings
Speaker 3: and things aren't going particularly well. Give me the specifics
Speaker 3: of the write down and the reasons behind it. Yeah.
Speaker 4: So, basically, what CEO David Zaslav discussed on the earnings
Speaker 4: car was that things have drastically changed in the media landscape.
Speaker 4: Valuations are different, market conditions are different, and this is
Speaker 4: a more realistic value for their traditional TV networks, and
Speaker 4: this is a signal to other major media companies to
Speaker 4: maybe take a look at their own traditional TV holdings
Speaker 4: and see if they too are of valued.
Speaker 3: I want to really focus on the technology story within it,
Speaker 3: which I think is everyone went to streaming and so
Speaker 3: they were left with properties that just weren't worth what
Speaker 3: they were at the time. The other issue for Warner
Speaker 3: Brothers Discovery, of course Hannah has been now down eleven
Speaker 3: percent in the session, is what happened with sports rights
Speaker 3: and MBA. That was a point of discussion. Just update
Speaker 3: us on what's going on.
Speaker 4: Yeah, So what happened with Warner Brothers was that they
Speaker 4: missed out on a seventy six billion dollar deal to
Speaker 4: get media rights for NBA games starting for the twenty
Speaker 4: twenty five to twenty twenty sixth season. They are now
Speaker 4: suing the NBA alleging breach of contract. That lawsuit was
Speaker 4: mentioned briefly during the call, with Zaslov saying that they
Speaker 4: are confident in their position and it's in the hands
Speaker 4: of lawyers right now.
Speaker 3: Bloomberg's Hannah Miller a really interesting story, big market move.
Speaker 3: Thank you for keeving us up to date on it.
Speaker 3: Now let's get back to financial markets and bring in
Speaker 3: Sarah ketro Causeway, CEO, Fundamental Portfolio Manager. About forty nine
Speaker 3: billion dollars of assets under management, and we're trying to
Speaker 3: work out in aggregate what's going on. And as that
Speaker 3: one hundred has been an interesting index to track this week,
Speaker 3: the sort of anxiety of Monday faded on a weekly basis.
Speaker 3: We're still soft to eight tens to one percent. You've
Speaker 3: got concerns about growth. Then we've got some economic data
Speaker 3: this morning that makes us feel that maybe recession risks
Speaker 3: are fading and we have a clearer picture on the FED.
Speaker 3: When you woke up this morning, Sarah, what was your
Speaker 3: picture of financial markets?
Speaker 2: Well, it was about the same as it was yesterday,
Speaker 2: which is reasonably optimistic and that's a function of again
Speaker 2: so much liquidity added to the US and global economies during, during,
Speaker 2: and after the pandemic, and much of this is still
Speaker 2: working through the system. But we have still a very
Speaker 2: strong consumer in the US. It's labors holding up, wages
Speaker 2: are holding up. There isn't no reason to panic, even
Speaker 2: though markets do that from time to time. So we're
Speaker 2: looking forward to some good earnings from our companies and
Speaker 2: for those, for example in technology where they depend on
Speaker 2: industrial production to be well placed.
Speaker 3: Thank you for bringing it back to technology. This is
Speaker 3: Bloomberg Technology after all. I mean, it's interesting you go
Speaker 3: to earnings. The story was really clear from the hyperscalis
Speaker 3: in particular right the commitment to capital expenditures for AI infrastructure.
Speaker 3: Maybe in Microsoft's case, you learn the lesson that you
Speaker 3: just don't miss street estimates in this environment. How selective
Speaker 3: are you being within that group of hyperscalers or other
Speaker 3: names that we're so focused on around the AI story.
Speaker 2: Well, the AI story is like and this has been
Speaker 2: well encapsulated on our website. Bar Our Workflolow, manager for Telecommunications,
Speaker 2: Media and Technology, Brian Show and that there are three
Speaker 2: cycles and this first one building is all about the
Speaker 2: building basic building blocks, meeting semiconductors, and you certainly saw
Speaker 2: that n Nvidia boom, but the memory semiconductor stocks have
Speaker 2: had a big run too, as they should, they've had
Speaker 2: to pull back.
Speaker 5: They're very interesting.
Speaker 2: And then to your point about the hyperscalers, they're absolutely
Speaker 2: critical in the next phase, which is delivery, so we
Speaker 2: need them to build out the cloud infrastructure. And they're
Speaker 2: also this is true of the ones that we as
Speaker 2: value investors prefer, like Alphabet and Meta. They're benefiting from
Speaker 2: their use of AI as they get more customer engagement
Speaker 2: and a hyperscaler like Alphabet. Not only do they have
Speaker 2: tremendous they can look forward to in phase three the deployment.
Speaker 5: Getting enterprises on cloud.
Speaker 2: They enterprise must have massive cloud access because they have
Speaker 2: so much compute needs with the data.
Speaker 3: Monday was a global market event in the sense that
Speaker 3: it started in the Asian session, went to Europe and
Speaker 3: then to the United States, but it also shone a
Speaker 3: light on Taiwan and Korea those markets, and when I
Speaker 3: was looking at your holding, Samsung really jumps out. You
Speaker 3: have a particularly strong view on Samsung. Explain the thesis
Speaker 3: there and where it sits in your holdings.
Speaker 2: Well, you're correct, and Samsung is one of our in
Speaker 2: both our International and Global fund, one of our largest holdings.
Speaker 2: And the reason why is it Samsung trades it very
Speaker 2: reasonable multiples. It's trading somewhere around book value. Either could
Speaker 2: get to one and a half times book. But they're
Speaker 2: a major player in memory semiconductors and the need for
Speaker 2: memory as AI compute expands goes up multifold, so memory
Speaker 2: demand rising Inexora belief, which is great for Samsung. In
Speaker 2: d RAM they compete with Skae, Heinex and mic and
Speaker 2: Samsung's on the CUSP we think of a major breakthrough
Speaker 2: and high bandwid memory, so they will be able to
Speaker 2: provide the more advanced memory chips. And all this emphasis
Speaker 2: on high bend with put some pressure on regular DRAMs,
Speaker 2: so there's some shortages.
Speaker 5: We'd like to see this.
Speaker 2: So the supply demand balance is very much in favor
Speaker 2: of less supply and more demand.
Speaker 5: Good for pricing. So Samsung's well placed their plus in.
Speaker 2: This phase three of delivery they've got or in phase
Speaker 2: two in deployment. There they are with mobile phones that'll
Speaker 2: be AI enabled, so those Galaxy phones should fly off
Speaker 2: the shelf. They have other consumer electronics, they're in foundry
Speaker 2: and display, like Samsung has it all.
Speaker 3: It's really interesting to hear you outline that we've done
Speaker 3: quite a lot on the show about high bandwidth memory
Speaker 3: and that if there's going to be this ramp and
Speaker 3: expansion of AI accelerator driven growth, you have to have
Speaker 3: the corresponding high bandwidth memory. But we've not discussed as
Speaker 3: much with the investor base. Sticking with chips, you also
Speaker 3: are interested in some of the more cyclical areas automotive industrial.
Speaker 3: I look at some of the names that are outside
Speaker 3: the United States, Infinian renaissance over in Japan. Why is
Speaker 3: it that you like that area?
Speaker 5: Well, automotives.
Speaker 2: Maybe there's been a slowing of auto sales, but the
Speaker 2: SAR doesn't matter as much as the content That matters.
Speaker 2: Chip content, and these automotive related semiconductors and Samsung and
Speaker 2: rhanasas Samsung, German NASAs Japan are experts.
Speaker 1: In that area.
Speaker 5: So we're expecting them.
Speaker 2: To see again content growth overwhelm or be more important
Speaker 2: than overall auto sales borrowing a recession, and we're not
Speaker 2: expecting one anytime soon. But they're also very strong in
Speaker 2: industrial chips and to see that in industrial automation and
Speaker 2: then think about data center and the need for power regulation.
Speaker 2: They're both really well placed there and those stocks have
Speaker 2: fallen some thirty plus percent over the last one month.
Speaker 2: In the case is Rhanasus, so the value is there
Speaker 2: as well, so you get the under valuation and the
Speaker 2: growth upside. It's a great combination.
Speaker 3: Sarah Ketterer. Of course, where it's really good to have
Speaker 3: you here on Bloomberg Technology. Thank you for joining us
Speaker 3: and that focus on chips in particular. Okay, coming up
Speaker 3: on the show, we're going to be joined by the
Speaker 3: next Door CEO, Nivtalia on the company's earnings, but also
Speaker 3: this overhaul of Nextdoor the social network. Next that's next. Next?
Speaker 3: What who shares of Bumble? Have you seen?
Speaker 2: This?
Speaker 3: Dating is over? The stock is down the most on record,
Speaker 3: are a really severe cut to its outlook. There are
Speaker 3: some specific or idiosyncratic factors relating to Bumble and its
Speaker 3: properties within that, but it's a pretty grim look for
Speaker 3: the data environment or apt base dating and you look
Speaker 3: at the stop year to date down more than sixty percent.
Speaker 3: It's a name that will continue to track. This is
Speaker 3: Bloomberg Technology. Okay. Next doors second quarter revenue beat analyst estimates,
Speaker 3: and the company projected stronger than expected sales growth, pointing
Speaker 3: to improvements in the company's AD technology as a key
Speaker 3: driver of sales, and it's CEO announced plans for a
Speaker 3: quote complete transformation of Nextdoor's core social network. Delighted to
Speaker 3: say that the CEO near rev Talia, is here with
Speaker 3: us on set in San Francisco. This is interesting. Let's
Speaker 3: go through the financial stuff and then we'll get into
Speaker 3: the platform itself. It's kind of high single digits growth
Speaker 3: on the user base side, and then you talked a
Speaker 3: lot about where the AD growth is, but just the
Speaker 3: fact is behind both of.
Speaker 6: Pieces of growth.
Speaker 3: Sure, why is that happening?
Speaker 7: Yeah, thank you for having me, by the way, it's
Speaker 7: great to be here with you, Ed, And let me
Speaker 7: just go through the numbers very quickly, because we had
Speaker 7: a very solid and productive quarter. So on the revenue side,
Speaker 7: we grew eleven percent year over year, so the first
Speaker 7: time in a few quarters that we're returning to double
Speaker 7: digit guests that.
Speaker 6: We feel really good about.
Speaker 7: On the user side, over forty five million weekly active users.
Speaker 7: That represents eight percent year over year growth and then
Speaker 7: on the bottom line a loss of six million dollars,
Speaker 7: which represents twenty three points of adjustitebat margin improvement. So
Speaker 7: on all three of those vectors, we feel very good
Speaker 7: about our performance in Q two, and we also announced
Speaker 7: that we raised guidance for the rest of the year.
Speaker 7: So solid execution and we're looking towards the future now
Speaker 7: for the real potential of the company.
Speaker 3: So let's define complete transformation. You know there's been change
Speaker 3: a next Door, a change with you, A.
Speaker 7: Complete transformation of leadership.
Speaker 3: Yes, complete transformation leadership in a return, But what is
Speaker 3: it that you think that the actual platform will get
Speaker 3: to advertising? The actual platform needs to be different or
Speaker 3: do differently.
Speaker 7: Nextdoor has an amazing opportunity. We want to be the
Speaker 7: essential neighborhood network because we think local is so core
Speaker 7: to everyone's life. It's so important that we have rich
Speaker 7: local lives, and that is the opportunity for Nextdoor as
Speaker 7: a consumer internet company. But our potential is not reflected
Speaker 7: today in the quality of our product. So when we
Speaker 7: talk about complete transformation, we're talking about making the product
Speaker 7: so good that every time our users and advertisers visit.
Speaker 6: They're delighted.
Speaker 7: We have an extremely high bar, very high expectations, and
Speaker 7: so it seems a little over the top to say
Speaker 7: complete transformation. But we're setting our sites extremely high because
Speaker 7: we think we can reach that potential.
Speaker 3: There will be loads of people watching the program bloom,
Speaker 3: both technology audience, who who might be on next Door.
Speaker 3: My wife and I bought our first home in March
Speaker 3: of this year.
Speaker 7: Ninety million verified neighbors.
Speaker 3: But that's my point that we were used for a
Speaker 3: specific neighborhood and we wanted to learn about what was
Speaker 3: going on. That makes sense to go to next door,
Speaker 3: But I still look at scale, you know, compared to
Speaker 3: other social media platforms, quite small. How do you take
Speaker 3: it to another order of magnitude greater bring in people
Speaker 3: for the first time.
Speaker 7: It's a great question. So Nextdoor has been around for
Speaker 7: fourteen years and as I mentioned, almost ninety five million
Speaker 7: verified neighbors in eleven countries around the world, So yes,
Speaker 7: we have some good scale. Primarily Nextdoor has been known
Speaker 7: for utility, so we.
Speaker 6: Call ourselves a social media.
Speaker 7: Product, but it's really about solving your everyday problems around
Speaker 7: local You have a home, it's one of your most
Speaker 7: important financial assets, and you want to protect that you
Speaker 7: want to make sure that you feel safe, you want
Speaker 7: to make sure that you're happy at home, and so
Speaker 7: Nextdoor primarily has been used around things like I need
Speaker 7: a babysitter, Okay, I need a plumber. I want to
Speaker 7: make sure that my home is kept up to date.
Speaker 7: I want to feel safe in a crisis, whether it's
Speaker 7: natural disaster, whether there's a spate of crime, I've lost
Speaker 7: a pet. These are really important use cases that people
Speaker 7: rely on nextdoor for every single day. But we typically
Speaker 7: thought we talk about weekly active users. Now the other
Speaker 7: social media services that you're talking about, they typically talk.
Speaker 6: About daily active uses.
Speaker 7: So the question for us is what can we do
Speaker 7: to ensure that we are delivering value to our users
Speaker 7: on a daily basis, not just lost pets and service
Speaker 7: providers and times of crisis, which are absolutely indispensable and
Speaker 7: Nextdoor can be a lifeline, but on a daily basis,
Speaker 7: how can we make your local life better.
Speaker 3: That's the part of the story being investment in ad
Speaker 3: technology sort of improving the value against that use best
Speaker 3: ne rev Tellier, next Door CEO and co founder, thank
Speaker 3: you so much. Let's stick with earnings. Retail trading Darling
Speaker 3: Robin Hood extended its growth into the second quarter despite
Speaker 3: a drop off in crypto activity. The company reporting five
Speaker 3: billion dollars in net new deposits as it expands it's
Speaker 3: products pipeline. Robin Hood, co founder and CEO of lad Tenev,
Speaker 3: joined Bloomberg Open interest earlier this morning. Listen to this.
Speaker 8: We shared in the earnings call that July volumes were
Speaker 8: about twenty percent higher than what we reported across June.
Speaker 8: August has continued very much the same one billion in
Speaker 8: net deposits in the first week. About half a billion
Speaker 8: of that came this Monday, and the overnight session for
Speaker 8: twenty four hour market on Sunday night was about three
Speaker 8: x a typical day. So twenty four hour markets have
Speaker 8: just been ripping and customers tend to be buying the dip.
Speaker 8: They're more buyers than sellers, which we think is a
Speaker 8: really good sign for the health of the retail market.
Speaker 9: We saw on Monday morning vlad as the market's kind
Speaker 9: of tanked and there was a lot of fear out there.
Speaker 9: Some of the more traditional, your more traditional competitors have
Speaker 9: problems with logins, and obviously it makes customers very angry,
Speaker 9: especially if they want to get in there and buy
Speaker 9: the dip when it's at five percent and it could
Speaker 9: lose opportunity any minute that goes by. How did your
Speaker 9: technology hold up during during those those shutdowns on other platforms.
Speaker 8: Our technology is strong. You know, We've made a lot
Speaker 8: of investments. We were fortunate not to have any issues
Speaker 8: of a significant nature when all of the competitors were
Speaker 8: down and a lot of customers were actually looking to
Speaker 8: Robinhood and we've we've had challenges in the past, no
Speaker 8: doubt about that, but that's hardened the company, hardened the
Speaker 8: infrastructure and now when we see high volumes, were ready
Speaker 8: for it. So we were happy to see customers moving
Speaker 8: to Robinhood and kind of pointing to us as one
Speaker 8: of the most reliable platforms doing during this recent bout
Speaker 8: of volatility.
Speaker 3: That was robin Hood. See I've lad Now coming up
Speaker 3: from the show, Joe ben Bevitt, CEO of Joby, joins
Speaker 3: us to discuss ev toll expansion in that company's earnings.
Speaker 3: That conversation coming up next. This is Bloomberg Technology time
Speaker 3: for Talking Tech and first stup defense tech startup and
Speaker 3: a reil has raised one point five billion dollars in
Speaker 3: a new funding round, valuing the company at fourteen billion dollars.
Speaker 3: Andreel says it plans to spend hundreds of millions of
Speaker 3: dollars on a new facility to ramp up manufacturing of rockets,
Speaker 3: underwater vehicles, and other autonomous weapons. Plus, Microsoft and Palenteer
Speaker 3: are set to combine their government cloud computing and AI
Speaker 3: tools in an effort to sell software to US defense
Speaker 3: and intelligence agencies. As part of the agreement, Pananteer will
Speaker 3: integrate its products with microshofts Azure cloud services and allows
Speaker 3: open AI implementation into tools that are meant for confidential use.
Speaker 3: And Meta sold ten point five billion dollars of investment
Speaker 3: grade bonds, boosting the company's cash pile as it spends
Speaker 3: heavily on AI. According to Bloomberg Data, the deal is
Speaker 3: the company's largest ever debt sale to date. Meta made
Speaker 3: its bond debut back in twenty twenty two, selling ten
Speaker 3: billion dollars. All right, let's stick with earnings. Joby reported
Speaker 3: after the closing bell on Wednesday, there's some important news
Speaker 3: about Dubai. I'm delighted to bring in Joe ben Bevitt,
Speaker 3: CEO of Joby, and I just want to get right
Speaker 3: to that Dubai project. You and I have spoken so
Speaker 3: many times over the years where I ask you, when
Speaker 3: are we going to see a joby fly and where,
Speaker 3: and it seems like you're closer to answering that absolutely.
Speaker 10: First, thank you so much for inviting me. I'm here
Speaker 10: in our flight test facility in Marina, California. It's amazing
Speaker 10: to be with you on Dubai. We're so excited. We're
Speaker 10: sprinting to the across the line where we've got incredible support,
Speaker 10: a six year exclusive in Dubai to provide Eric taxi service,
Speaker 10: and our target is to launch that service by the
Speaker 10: end of next year. Really really pleased with the progress
Speaker 10: that we're making, and again, thank you for being having
Speaker 10: us today.
Speaker 3: Joe Ben. You know I'm really interested in the business
Speaker 3: model long term. You know that I also take a
Speaker 3: microscope to your financials, your losses and sort of cash
Speaker 3: burner at pace with the streets expectations. Just explain the
Speaker 3: timeline of how that changes and when you start becoming
Speaker 3: meaningfully revenue generating.
Speaker 6: Yeah, so thank you.
Speaker 10: We are executing exactly to plan, and we have a
Speaker 10: very rigorous financial discipline. We are methodically ramping our production.
Speaker 10: We just announced that we had rolled the third aircraft
Speaker 10: off our pilot manufacturing line, and we have the fourth
Speaker 10: and fifth coming along quickly behind. We're going to have
Speaker 10: four aircraft in our flight test program as we're driving certification,
Speaker 10: and we've completed the first three stages of certification with
Speaker 10: the FA and we're now working on the fourth stage
Speaker 10: where we've announced that we're thirty seven percent complete there,
Speaker 10: so as we move into commercialization, we can begin to
Speaker 10: generate meaningful revenues and reduced the cash burn on the company.
Speaker 6: So very very pleased with progress.
Speaker 3: Joe Ben, Is America moving fast enough on EV toll America?
Speaker 10: Absolutely, We're We have incredible bipartisan support in Washington, d C.
Speaker 10: And this last year we were invited to New York
Speaker 10: where we were able to fly our air taxi in
Speaker 10: New York City from the Wall Street Helipad.
Speaker 6: It was, you know, dream come true for me.
Speaker 10: I've been working on this for many, many years and
Speaker 10: seeing the age of clean, quiet, emissions, free propuls aircraft
Speaker 10: being able to fly in a city like New York
Speaker 10: is really exciting. We have an incredible partnership with Delta
Speaker 10: Airlines and we're working to build with the port authority
Speaker 10: to build best in class infrastructure at New York and
Speaker 10: LaGuardia or New York JFK and Loguardia.
Speaker 3: So, Joe Ben, when does that happen? The ability to
Speaker 3: take one of your evy toll from Wall Street to
Speaker 3: an airport in the real.
Speaker 6: World, it's coming very soon.
Speaker 10: Again, we're making great progress with the port authority on
Speaker 10: the permitting of those take off and landing locations connected
Speaker 10: to the Delta hubs. You can get off your Delta
Speaker 10: flight and onto a Jobe flight very seamlessly, and you
Speaker 10: can be in a matter of minutes into Manhattan. So
Speaker 10: we think this is a really exciting opportunity and it's
Speaker 10: coming very very soon, really paced by the speed at
Speaker 10: which we can get that infrastructure built.
Speaker 3: Joe Ben Bevitt CEO, Joe be great to have you
Speaker 3: back here on Bloomberg Technology. Thank you. Now. Coming up
Speaker 3: on the show, we are joined by Andrew Baielecki, the
Speaker 3: co founder and CEO of Klavio, to discuss that company's earnings,
Speaker 3: which were also released after the closing bell on Wednesday.
Speaker 3: This is Bloomberg Technology. Welcome back to Bloombag Technology. Ed
Speaker 3: Ludlow in San Francisco. I want to show you a
Speaker 3: chart that maybe you didn't know you needed. This shows
Speaker 3: normalized performance going back to nineteen ninety nine, with Nvidia
Speaker 3: going in one direction in this session and Monster Beverage Corp.
Speaker 3: Going in the other direction. The point being that Innvidia
Speaker 3: has once again overtaken Monster is the best performing stock
Speaker 3: on the S and P five hundred this century, which
Speaker 3: is an important data point. But I'd also say this
Speaker 3: courtesy of Dan Curtis, our terminal data editor, that think
Speaker 3: about Jensen One, the CEO of Nvidia. He has a
Speaker 3: three point five percent stake in Nvidia. He could buy
Speaker 3: all of Monster Beverage Corp. And every single share and
Speaker 3: still have enough money left over to go out and
Speaker 3: buy another chip company, or even if he wanted Lululemon.
Speaker 3: Some size and scope of the scale of Nvidia, not
Speaker 3: just its performance on a percentage basis, but how it's
Speaker 3: overtaken some of the wildest stock stories we've seen, which
Speaker 3: one of them was until this session, Monster Beverage. Let's
Speaker 3: turn back to the earning story. Klaviy O, the software company,
Speaker 3: reported earnings after the closing bell on Wednesday. Co founder
Speaker 3: and CEO Andrew Bieleeki joins us now for more and
Speaker 3: my goodness, Andrew, look at your stock up twenty seven
Speaker 3: point two five percent, thirty five percent growth on pretty
Speaker 3: decent customer growth. Where would you like to start. This
Speaker 3: is the best day for your stock since you went public.
Speaker 11: Yeah, well, thanks for having us, and thanks to Clavio's
Speaker 11: around the world for a great quarter, really delivering for
Speaker 11: our customers and partners. You know, I'm really excited about
Speaker 11: the one hundred and fifty thousand plus now businesses that
Speaker 11: we serve. We had a bunch of great brands in
Speaker 11: the quarter, Barstool Sports, Hersonal supply Company, and we're really
Speaker 11: what makes Clevio special is we're helping businesses take control
Speaker 11: of their relationships with consumers and then drive revenue. And
Speaker 11: I think when you know the economic environment is a
Speaker 11: little uncertain, software like clevieo becomes a must have.
Speaker 3: So so on it being a must have, it's also
Speaker 3: interesting to look who's on the other side of the
Speaker 3: table for you. You added, like in the call to Sampsonite,
Speaker 3: for example, why does a company like Samsonite need clavier?
Speaker 11: Yeah, So what Clavio Software does is we help pull
Speaker 11: all of a business's data together. So take Samsonite, you know,
Speaker 11: one of the largest luggage travel companies in the world.
Speaker 11: We help them organize that data and then deliver personalized
Speaker 11: experiences across a variety of channels from email to SMS
Speaker 11: to mobile messaging. And because of how well C connects
Speaker 11: with the other systems inside of an organization, and a
Speaker 11: lot of the advanced capabilities, including a lot of the
Speaker 11: AI features we've released in the last few months Clavio AI.
Speaker 11: You know, those two factors are why businesses are choosing
Speaker 11: to work with us.
Speaker 6: Because we're a revenue engine.
Speaker 3: I like to look at geography as well, and it's
Speaker 3: really interesting that the Emia region was continues to kind
Speaker 3: of be a a drive a few Why why is
Speaker 3: that such engagement in Europe and the Middle East and Africa.
Speaker 11: Yeah, So, you know, over the last few years, we've
Speaker 11: you know, we're executing our strategy really well. We've done
Speaker 11: a lot of expansion into Europe and with that, we
Speaker 11: launched our products and a lot of our you know, documentation.
Speaker 11: We've added you know, we went beyond English into French.
Speaker 11: We formally launched in the French region and now we've
Speaker 11: established that playbook.
Speaker 5: It happened.
Speaker 3: You know, we launched in Q two.
Speaker 11: We really like the growth we're seeing, and now we're
Speaker 11: going to take that same playbook and use it across
Speaker 11: the rest of Europe and then extend that around the
Speaker 11: rest of the globe into Asia and other parts of
Speaker 11: the Americas.
Speaker 5: And what we've known for a long time.
Speaker 11: Is there are businesses using Klavio in over eighty countries,
Speaker 11: but we're trying to build a product experience that's really
Speaker 11: native to them and so doing things like expanding our
Speaker 11: SMS capabilities. We've more than doubled the number of countries
Speaker 11: where we now support text messaging.
Speaker 3: We have plans to grow that.
Speaker 11: So really excited about the growth we're seeing international in
Speaker 11: Europe in particular.
Speaker 3: Andrew, you're a Boston based company with fewer than two
Speaker 3: thousand employees. What's the talent story for you right now?
Speaker 3: Particularly in terms of AI and headcount. Many companies are
Speaker 3: actually cutting certain areas to reallocate to areas of growth
Speaker 3: like AI. What's your strategy?
Speaker 11: Well, so, from a you know, from a technology standpoint,
Speaker 11: we are very much believers in using artificial intelligence, both
Speaker 11: for our customers and in for us. So we've seen
Speaker 11: good productivity gains from using AI across Klavio, and we
Speaker 11: invest our own some of our own engineering resources and
Speaker 11: doing that. But in terms of our headcount strategy, we're
Speaker 11: global business, so we look for the best.
Speaker 3: Talent around the world, you know.
Speaker 11: I know we started in Boston, but we have offices
Speaker 11: now in Denver, in San Francisco, and London and Sydney,
Speaker 11: and we're planning to open more over the next few quarters.
Speaker 11: So we look for folks that are really ambitious, we
Speaker 11: say high slope. They want to be learners, and wherever
Speaker 11: that talent is, we want them to, you know, come
Speaker 11: join forces with us.
Speaker 3: Andrew Bielecki, CEO of Clavio, and again Clavio up more
Speaker 3: than twenty seven percent, best days since going public in September.
Speaker 3: Thank you. All right, let's talk a little bit more
Speaker 3: about Europe and tech. Semens posted week sales and a
Speaker 3: drop in new orders for its factory automation business, though
Speaker 3: it did record a jump in software demand in the
Speaker 3: third quarter. Bloombers Guy Johnson our Semen CEO Roland Bush.
Speaker 3: Where the strength to the company's bottom line is coming from.
Speaker 3: Have a listened to this.
Speaker 1: It was driven basically by another very strong quarder of
Speaker 1: smart infrastructure. Our electrical business grew by twenty one percent,
Speaker 1: but he also had a very strong softer business. Underlying
Speaker 1: the softer business was very strong, but we also had
Speaker 1: a couple of winds.
Speaker 6: Large wins.
Speaker 1: They don't repeat in that size again, but this helped
Speaker 1: quite a bit also in drive our top line in
Speaker 1: bottom line as well.
Speaker 12: So some fully loppy numbers this time around, which probably
Speaker 12: aren't you have there? You have those stock to your
Speaker 12: guidance for the full year, given what you've just said,
Speaker 12: given what you see in the world at the moment,
Speaker 12: how predictable is the business though right now?
Speaker 1: Well yes, we indeed we confirm our guidance our full
Speaker 1: year outlook for the growth we will end up at
Speaker 1: the lower end though, and we also confirm on our
Speaker 1: EPs guidance the heads name holds true for our businesses
Speaker 1: regarding the IVC their profitability for the full year on
Speaker 1: the lower end, for the SI on the upper end.
Speaker 1: So coming to the predictability, it's really a there are.
Speaker 1: The biggest element which we have here is that over
Speaker 1: the last three years the automation business was growing tremendously
Speaker 1: fast and this ended up in quite a bit of
Speaker 1: stocking in our distribution channels, and this stocking effect has
Speaker 1: to go down. You have to be stock on the
Speaker 1: one side and the market has to pick come on
Speaker 1: the other. This is the unpredictability. How fast does that go?
Speaker 1: When will the market pick up? We see a certain
Speaker 1: light in chemical industry also in China, which is a
Speaker 1: leading indicator, but this is not really the momentum we
Speaker 1: need in order to really go there. Therefore, we still
Speaker 1: have a muted market for automation. It is temporary effect, structural.
Speaker 1: We believe this market keeps on going because there's a
Speaker 1: demand for higher automation and digitalization in the whole industry.
Speaker 3: That was seman CEO Roland Bursch. Now coming up on
Speaker 3: Bloomberg Technology, we're joined by SNAs Coro, former NASA executive,
Speaker 3: to discuss the plans that are being hatched between NASA
Speaker 3: and SpaceX to return the astronauts that have been stuck
Speaker 3: in orbit after complications on that star Liner test mission.
Speaker 3: Really interesting conversation ahead. This is Bloomberg Technology. This is
Speaker 3: Bloomberg Technology, and you're looking at a live shot of
Speaker 3: the principal room. Check out our Bloomberg Technology podcast. You
Speaker 3: can find it on the terminal Apple Spotify and iHeart
Speaker 3: this is Bloomberg. Okay, so we have an update on
Speaker 3: the Boeing Starliner test mission. NASA is working with Elon
Speaker 3: Musk's SpaceX on a plan to return the two astronauts
Speaker 3: back to Earth in February twenty twenty five after technical
Speaker 3: complications caused them to be stuck in orbit for about
Speaker 3: two months on the International Space Station. NASA is going
Speaker 3: to make a final decision in mid August on whether
Speaker 3: to deploy this backup plan. I want to bring in
Speaker 3: an expert who knows the inner workings of the Space Agency.
Speaker 3: Isna Ozo Okuro, former NASA Executive White House Assistant Director
Speaker 3: for Space Policy. Enjoins US now and as an a
Speaker 3: The extension of that plan is that there is a
Speaker 3: crew mission going up in September with SpaceX, and then
Speaker 3: maybe the two astronauts currently on ISS could hitch a
Speaker 3: ride back February of twenty twenty five, which seems a
Speaker 3: really long time away. Just your reaction to where we
Speaker 3: are right now that are backup plans needed?
Speaker 6: You know?
Speaker 13: The great thing about this backup plan is that we
Speaker 13: have it, because if we didn't, then I think that
Speaker 13: there would be, especially when you look at the global
Speaker 13: geopolitical environment, I think that we would have a much
Speaker 13: harder time if we didn't have this option. So it's
Speaker 13: great that we have this option. I think that's the
Speaker 13: first and most important thing. And it's important that America
Speaker 13: has two options to vary humans.
Speaker 6: Safely to space.
Speaker 13: What I do see also is NASA Boeing and SpaceX
Speaker 13: prioritizing human safety first, as they should, so that's equally important.
Speaker 3: There is reporting out there about NASA officials or teams
Speaker 3: within NASA sort of not being one hundred percent aligned
Speaker 3: on what the best plan was to do is best.
Speaker 3: You can just help our audience understand how NASA works.
Speaker 3: You know, now in this era of space, we have
Speaker 3: commercial partners, you know, leading the activity, but NASA still
Speaker 3: has a central role.
Speaker 5: Absolutely well.
Speaker 13: The astronauts are at NASA employees, they are NASA astronauts,
Speaker 13: and these companies have contracts with NASA. So NASA has
Speaker 13: a responsibility to review and authorize decisions because at the
Speaker 13: end of the day, the buck stops with them. And
Speaker 13: so if you step back a few weeks ago, there
Speaker 13: was a task that was consulted and what they're about
Speaker 13: twenty six of the twenty seven jets that were fired,
Speaker 13: and the goal was to ensure that these thrusters were
Speaker 13: working properly, and we're meeting performance requirements. And now the
Speaker 13: team is going back and analyzing that data. So there
Speaker 13: are two reasons.
Speaker 5: They can really go either way.
Speaker 13: One could say, well, you know, we've analyze the data
Speaker 13: and we think that this Boeing aircraft can come back
Speaker 13: with the astronauts or without the astronauts. And then there
Speaker 13: is another reasoning, which is that SpaceX is really the
Speaker 13: way to go. So either way, what you see within
Speaker 13: the agency is that there are people and this is
Speaker 13: good when you have disagreement. And now they have a
Speaker 13: bit more time, given the SpaceX mission that's going up
Speaker 13: in September, to analyze the data further, and then they
Speaker 13: will make a decision and based on the performance of
Speaker 13: the thrusters, the performance of this helium leak that they
Speaker 13: are monitoring, and they will make a call mid August
Speaker 13: based on all the information they have available, and they
Speaker 13: will obviously make a decision that includes the prioritizes human
Speaker 13: safety first, that prioritizes a safe landing, and that also
Speaker 13: builds confidence in the system.
Speaker 3: That's what I want to ask about as an A,
Speaker 3: because we just showed the chart of Boeing spending on
Speaker 3: the star Liner project and it's been well reported the
Speaker 3: cost overruns, the delays. How to your mind, de NaSTA
Speaker 3: and Boeing as partners now go back out and bring
Speaker 3: public confidence in the program going forward when it works.
Speaker 13: And that's what that's the point. We're trying to get
Speaker 13: to a point where it will work and there is
Speaker 13: confidence that's built in the system so that it can
Speaker 13: ferry humans, and then the public will have confidence in
Speaker 13: the system. But we have to get it to work first,
Speaker 13: and which is why the analysis of these firing tests
Speaker 13: that were conducted recently have to be completed, but NASA
Speaker 13: will not will not make a decision until they are
Speaker 13: they have conducted a thorough analysis and believe that the
Speaker 13: data provided moves them in one direction or another.
Speaker 3: As an A, also a senior fellow at the Harvard
Speaker 3: Belfa Center. The other big piece of talk right now
Speaker 3: in the industry is China and it's satellite constellation ambitions.
Speaker 3: Might they do something similar to starlink And if they
Speaker 3: were to, how does that work? The competition for space
Speaker 3: the proximity of a US run constellation to a Chinese constellation.
Speaker 3: Your thoughts on that isn't it?
Speaker 13: You know what is great about this question and the
Speaker 13: scenario is that we are already living it. Before the
Speaker 13: SpaceX constellation went up, we had smaller constellations, but we
Speaker 13: still had constellations in space. And then a mega constellation
Speaker 13: was put up by US commercial company, which gave us
Speaker 13: a leverage to understand and to plan for what it
Speaker 13: would look like if a strategic competitor, in this case
Speaker 13: a nation like China put up constellations of their own.
Speaker 13: So through the constellation that we have up there put
Speaker 13: up by SpaceX, we have been able to have discussions
Speaker 13: and even remediations to radio astronomy issues, to night sky
Speaker 13: issues based on what the satellites can see or what
Speaker 13: they prevent us from seeing from here on Earth. We
Speaker 13: have had conversations about orbital debris, which is the amount
Speaker 13: of junk that is left in space. Now we've had
Speaker 13: conversations about space sustainability and figure it out policy and
Speaker 13: engineering solutions to all of these issues. And so I
Speaker 13: think that we are actually in a better place as
Speaker 13: the United States to prepare the best we can for
Speaker 13: this consolation, because we have an example up there today.
Speaker 13: If we didn't, then I think we would be in
Speaker 13: a completely different place. However, that doesn't mean that we
Speaker 13: can plan entirely, as you say, for what will happen.
Speaker 3: As an Azokoro, it's great to have you back on
Speaker 3: Bloomberg Technology. Thank you, former Nasser executive and as I said,
Speaker 3: currently a fellow at the Harvard Belfa Center. Coming up
Speaker 3: on the show, Apple is working on its smallest desktop
Speaker 3: computer yet. We have that Bloomberg reporting coming up next.
Speaker 3: This is Bloomberg Technology. Apple is planning a new version
Speaker 3: of the Mac Mini that will be its smallest desktop
Speaker 3: computer yet. This is part of a broader overhaul of
Speaker 3: the Mac line with AI Focus Chips, bringing in bloomboas
Speaker 3: Mark German, who of course broke the story and the
Speaker 3: focus here is M four and bringing M four him.
Speaker 3: Just explain the basic details of what you've reported.
Speaker 14: Yeah, So the Mac COMMINEE, last revamped in twenty ten
Speaker 14: under received jobs, now about fifteen years later, is getting
Speaker 14: another redesign. That's a really big delta in between new designs,
Speaker 14: and this is essentially because of these new processors. An
Speaker 14: iPad pro in a box.
Speaker 5: They're able to.
Speaker 14: Shrink this down into something that is about the size
Speaker 14: of an Apple TV set up box, so something probably
Speaker 14: smaller than four by four inches.
Speaker 5: This is going to be a very popular computer.
Speaker 14: This is probably going to be marketed as the smallest
Speaker 14: desktop computer ever made, not only by Apple but by
Speaker 14: any computer company.
Speaker 5: And this is going to have a supremely powerful chip.
Speaker 14: The M four pro chip is going to have even
Speaker 14: better graphic source power, even better AI processing, even better
Speaker 14: CPU performance than the M four and the new iPad pro.
Speaker 14: So this is going to be very exciting to macfans
Speaker 14: and coming later this year.
Speaker 3: The ideas outline to us by opening bag sources are
Speaker 3: really interesting. What I'd try to understand, and Apple didn't
Speaker 3: comment on the story, of course, is where the Mac
Speaker 3: Mini or Mac kind of sits within the lineup of
Speaker 3: Apple products. Who's the buyer heir Mark?
Speaker 14: Yeah, this Mac Mini is going to be for people
Speaker 14: who want to hook up a computer to their TV.
Speaker 6: You know, there's some.
Speaker 14: People who connect Macs to their TVs in their living
Speaker 14: rooms or in their office.
Speaker 5: That's going to be a big year space.
Speaker 14: But also someone who has a desktop at home and
Speaker 14: wants to do laptop s work, so the same amount
Speaker 14: of work you would do on a desktop, So web browsing.
Speaker 5: Email, photo editing, and video editing. You'll be able to
Speaker 5: do that with this machine and hook it up to
Speaker 5: any monitor you have.
Speaker 14: It comes standalone, a keyboard, no mouse, don't drag that
Speaker 14: in the box.
Speaker 5: So this is going to be a pretty modular machine.
Speaker 3: Bloomberg's Mark German with another exclusive piece of reporting, thank you, okay.
Speaker 3: For years, the likes of Google and Open Ai have
Speaker 3: been racing to build ever bigger and costlier AI models
Speaker 3: using a tremendous amount of online data. Think chatbots like
Speaker 3: chat gpt, which can handle a wide range of complex queries.
Speaker 3: But some startups are now betting on a different strategy,
Speaker 3: small language models, automating a more limited set of data
Speaker 3: day corporate tasks without requiring as much data. Bloombog's Rachel
Speaker 3: Mets has been writing about exactly this. So you've heard
Speaker 3: of the large language model, now is the time of
Speaker 3: the small language model. What is a small language model?
Speaker 15: Small language model is kind of what it sounds like, right.
Speaker 15: A large language model is treaming on a ton of data,
Speaker 15: often gathered from all over the Internet and used for
Speaker 15: a range of tasks.
Speaker 5: Chat GBT people.
Speaker 15: Might use it to write Shakespeare's sonnets about ice cream,
Speaker 15: or they might use it to summarize meeting notes, you know,
Speaker 15: like a very diverse range of tasks that are related
Speaker 15: to human language. These small models are trained on a
Speaker 15: much smaller, more refined set of data. And the idea
Speaker 15: is that for a lot of companies, and lets be clear,
Speaker 15: companies are really the customers for a lot of these
Speaker 15: large language models. They're the ones with lots of money, right,
Speaker 15: and AI companies want them to pay for them.
Speaker 5: They're going to need them for specific things.
Speaker 15: And maybe one thing that they are really good at,
Speaker 15: something related to coding, perhaps a chatbot that's very focused
Speaker 15: on tax prep questions for instance. So the hope by
Speaker 15: a lot of these companies is that these models will
Speaker 15: be more energy efficient, and they will be more focused,
Speaker 15: and they will basically just be more helpful in general.
Speaker 3: Who is leading the way in small language models? It
Speaker 3: kind of seems like an old question, but every time
Speaker 3: a very cutting edge large language model comes out, we
Speaker 3: cover it as news on the show. Do we have
Speaker 3: a sense of like who's focused on that area?
Speaker 15: Yeah, So we have actually like a pretty big range
Speaker 15: of companies that are involved in this. There are a
Speaker 15: couple startups that are very focused on this. I spoke
Speaker 15: with one called rcai. They are totally focused on customizing
Speaker 15: open source small models and customer so they customize them
Speaker 15: for customers, including a company called Guild which used it
Speaker 15: to make a career coaching chatbot so they could scale
Speaker 15: up more than they could do with their human career coaches.
Speaker 15: Socana Ai is a company that's in Japan that's working
Speaker 15: on this. And then also the big tech companies have
Speaker 15: increasingly been releasing these small versions of their larger flagship
Speaker 15: models like Opening I recently released or O Mini.
Speaker 3: Bloomberg's Rachel mets on small language models a new term
Speaker 3: for daily use here on the show. That does it
Speaker 3: for this edition of Bloomberg Techno, lots of recap. Don't
Speaker 3: forget to check out our podcasts. You know where to
Speaker 3: find it on the Bloomberg platforms, the terminal as well
Speaker 3: as online and Apple, Spotify and iHeart will show you
Speaker 3: some beautiful pictures in just a moment. And for now,
Speaker 3: this is Bloomberg Technology