WEBVTT - Walmart Slumps After Rare Profit Miss Overshadows Higher Sales 

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<v Speaker 2>The retail earnings from Walmart out of the gate, it

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<v Speaker 2>sounded good. They raise their full year sales guidance, but

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<v Speaker 2>it missed on the bottom line. It shares her down

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<v Speaker 2>about four percent. So here to give us more details

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<v Speaker 2>on that is Jennifer Bartasha. She's Bloomberg Intelligence senior analysts retail,

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<v Speaker 2>Staples and package Foods. Jenn Welcome to the show. Were

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<v Speaker 2>the expectations just a little bit too hi? Coming into

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<v Speaker 2>the print? I mean what happened?

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<v Speaker 3>Well, when I look at this quarter, it really is

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<v Speaker 3>it's really more about one off kind of things that

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<v Speaker 3>were unanticipated, and so I don't know that there's any

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<v Speaker 3>way the street really could have anticipated, you know, higher

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<v Speaker 3>costs for related to you know, having to to hold

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<v Speaker 3>money back for settling claims. So if you look at

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<v Speaker 3>the quarter on paper, it was actually a pretty good quarter,

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<v Speaker 3>especially in a very volatile backround, you know, background.

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<v Speaker 4>That we have.

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<v Speaker 5>What are they saying about the consumer, the health of

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<v Speaker 5>consumer gen because nobody has a better pulse finger on

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<v Speaker 5>the pulse than Walmart.

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<v Speaker 3>Very true. I mean, when when you look at the

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<v Speaker 3>health of the consumer, you know, Walmart is definitely capitalizing

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<v Speaker 3>on whatever willingness there is to spend. I think one

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<v Speaker 3>of the very interesting takeaways from the results today is

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<v Speaker 3>that in Sam's Club everything was driven by units sold,

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<v Speaker 3>and in Walmart US, you know, their traffic was up

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<v Speaker 3>and their and their ticket was up. That means that

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<v Speaker 3>Walmart is really unique across other retailers in terms of

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<v Speaker 3>selling greater volumes, which really means that they're bringing more

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<v Speaker 3>and more people into that ecosphere. And they did call

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<v Speaker 3>out higher income households as one of those biggest contributors.

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<v Speaker 2>Now you're comparing Okay to Walmart to let's say, a

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<v Speaker 2>Sam's Up. What about Walmart to a Target?

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<v Speaker 5>As far as.

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<v Speaker 2>How tariffs affect them, I mean, do towers affect Walmart

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<v Speaker 2>differently than they affect Target?

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<v Speaker 3>Well, I would. I would argue that that Target actually

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<v Speaker 3>has a little bit greater exposure to tariffs than Walmart.

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<v Speaker 3>And that's simply because, as Paul knows, Walmart is the biggest,

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<v Speaker 3>you know, grocery retailer in the United States, and it

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<v Speaker 3>takes a big chunk of their revenue, and Walmart imports

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<v Speaker 3>as a result a little bit less that said, you know,

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<v Speaker 3>I think one of the other differences is Walmart has

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<v Speaker 3>doubled down on improving the quality and the assortment in

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<v Speaker 3>their general merchandise. And one of the things that they

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<v Speaker 3>called out today is that they're seeing market share gains

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<v Speaker 3>and things like apparel and fashion, which are traditionally the

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<v Speaker 3>areas that target has excelled at. So that that's also

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<v Speaker 3>an interesting takeaway looking at the two retailers between yesterday

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<v Speaker 3>and today.

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<v Speaker 5>What do you think here going forward, Jen, these retailers

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<v Speaker 5>will try to do with any tariff induced cost increases.

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<v Speaker 5>Are they going to take as much as a hen

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<v Speaker 5>in the margin before passing on the consumer or how

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<v Speaker 5>do you think you're going to do that?

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<v Speaker 3>Well, I think in order to preserve value, value perception

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<v Speaker 3>is really important, and that's what's going to help keep

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<v Speaker 3>you retain market help you retain market share. So I

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<v Speaker 3>think price increases will be a last resort. But you know,

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<v Speaker 3>the impact of tariffs has been very gradual, and I

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<v Speaker 3>think what we're going to see is, is we get

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<v Speaker 3>into second half with all of these retailers, the inventory

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<v Speaker 3>they currently have on hand, much of which they accelerated

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<v Speaker 3>to get in ahead of tariffs, is now being sold

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<v Speaker 3>and it's being replaced at higher cost. So we're seeing

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<v Speaker 3>inventory go up basically off of the cost of inventory itself.

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<v Speaker 3>And how will they sell that through without having to

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<v Speaker 3>do markdowns and without having to absorb too much cost

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<v Speaker 3>is really what's what's going to be critical. I do

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<v Speaker 3>think margins are going to be pressured a little bit

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<v Speaker 3>more in the second half because of that, and because

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<v Speaker 3>that they are going to have to take some strategic

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<v Speaker 3>price increases where they can, They're just going to be

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<v Speaker 3>very targeted and where they do that, Jan.

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<v Speaker 2>Can you get into delivery and e commerce? Because that

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<v Speaker 2>has been a big help for Walmart? I mean, it

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<v Speaker 2>would it eventually give Amazon some competition?

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<v Speaker 5>Where is it?

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<v Speaker 2>Where does it stand there?

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<v Speaker 6>Well?

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<v Speaker 3>I think one of the big competitive advantages for Walmart

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<v Speaker 3>is the stores and the proximity to people's houses. So

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<v Speaker 3>the ability to deliver quickly and two people's homes on

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<v Speaker 3>a same day or a few hours basis is really

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<v Speaker 3>a competitive advantage. That they have. E Commerce is growing

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<v Speaker 3>at an incredibly healthy clip for Walmart, and as a

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<v Speaker 3>result of that, we're seeing, you know, the higher margin

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<v Speaker 3>businesses like advertise digital advertising really grow as well. And

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<v Speaker 3>that also helps, you know, strengthen ensure up the overall

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<v Speaker 3>financial position of the company. So that focus on expanding

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<v Speaker 3>digital sales I think we will continue, and they're really

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<v Speaker 3>executing well on those strategic objectives, and I think we'll

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<v Speaker 3>see a lot of that type of focus as we

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<v Speaker 3>get into the end of the back to school season

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<v Speaker 3>and into the holiday season.

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<v Speaker 5>All right, this is Walmart we're talking about, Jen, Why

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<v Speaker 5>can't they just raise prices five to ten percent on

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<v Speaker 5>light bulbs and whatever? I mean, where am I going

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<v Speaker 5>to go if they do that? I mean, it's Walmart, well.

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<v Speaker 3>It is, but I mean their culture is steeped in

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<v Speaker 3>being the lowest possible price provider, and so, you know,

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<v Speaker 3>I think that part of the reason they've been able

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<v Speaker 3>to gain market share in recent years as we saw

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<v Speaker 3>very high food inflation, is that they're really focused on

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<v Speaker 3>preserving that price gap to other competitors. So you're right, Paul,

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<v Speaker 3>they could raise prices by five percent, and Walmart does

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<v Speaker 3>raise prices when it's needed. We saw prices grow up

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<v Speaker 3>during the period of food inflation, but they're also one

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<v Speaker 3>of the fastest to take prices back down when they can,

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<v Speaker 3>and so I think that they've got a team of

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<v Speaker 3>merchants who are very skilled at deciding when and where

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<v Speaker 3>they need to take price, and because they sell such

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<v Speaker 3>a broad variety of categories and items, it doesn't have

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<v Speaker 3>to be a uniform price hike across the entire company.

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<v Speaker 2>In the last minut or so we have here, I mean,

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<v Speaker 2>can you just explain how they keep their prices so low?

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<v Speaker 2>I mean, how are they able to do it?

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<v Speaker 5>I don't get it.

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<v Speaker 3>Well, there's a self fulfilling cycle in retail, which is

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<v Speaker 3>that as you sell more units, you get better prices

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<v Speaker 3>when you're buying them right, because you're selling higher volumes.

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<v Speaker 3>And so Walmart has really gotten into that cycle where

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<v Speaker 3>they're selling such big volumes that they're able to procure

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<v Speaker 3>even better purchasing terms, and so that definitely helps them

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<v Speaker 3>with the ability to keep prices level when other competitors

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<v Speaker 3>who may not have the benefit of that type of

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<v Speaker 3>cycle are having to pay slightly higher costs.

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<v Speaker 5>Stay with us more from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 1>weekdays at ten am. He's done on Apple, Cocklay and

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<v Speaker 5>Back to the world of M and A. We had

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<v Speaker 5>a little bit of a trade here, I'm gonna say

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<v Speaker 5>kind of more than a little bit of a trade,

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<v Speaker 5>Toma Bravo agreeing to acquire day Force and a deal

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<v Speaker 5>about twelve point three billion dollar deal. Let's break this

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<v Speaker 5>thing down with Niroshptel, Bloomberg Contelligence senior software anamals Neuraj. First,

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<v Speaker 5>tell us what does day Force do and why are

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<v Speaker 5>they selling themselves to Tomo Bravo.

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<v Speaker 6>Yeah, dave Force is in the HR payroll software space,

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<v Speaker 6>so consider the back office segment. This total market's about

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<v Speaker 6>fifty billion in size, about ten percent growth rate. So

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<v Speaker 6>they're selling modules when they're trying to imboard employees. They're

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<v Speaker 6>doing performance reviews all the way to retirement type of services.

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<v Speaker 2>So what kind of struggles have they been going through

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<v Speaker 2>that Tomo Bravo is coming in.

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<v Speaker 6>Yeah, that's an interesting question, Lisa. From our view, we

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<v Speaker 6>have not a lot of struggle here. It's more normalization

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<v Speaker 6>of growth in the industry. They have a ten to

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<v Speaker 6>twelve percent forecasted growth rate ahead from the next two years,

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<v Speaker 6>but that's considerably down from twenty plus percent in twenty

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<v Speaker 6>twenty two and twenty twenty three. But that's more of

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<v Speaker 6>the industry shift from being able to sell to new

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<v Speaker 6>customers and now reliance on existing customers. And when they're

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<v Speaker 6>selling to existing customers, the big sale is behind them,

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<v Speaker 6>the big payroll sale is behind them. Now they're adding

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<v Speaker 6>on two to four dollars type of price per user

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<v Speaker 6>when they're selling talent modules or learning modules and some

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<v Speaker 6>of the other HR software aspects.

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<v Speaker 5>Why is day Force selling here. It's not you don't

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<v Speaker 5>see it, but it's a little bit unusual for growing

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<v Speaker 5>software technology companies to sell to private equity.

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<v Speaker 6>Yeah, that's a good point, Paul. I think two years

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<v Speaker 6>ago this would be seen as too cheap. Let's say

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<v Speaker 6>five times forward sales about twenty seven on a price

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<v Speaker 6>to earnings for twenty two twenty six, So there would

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<v Speaker 6>have been a little pushback. Maybe there would have been

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<v Speaker 6>some other competing bids coming in today, application software has

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<v Speaker 6>faced a lot of pressure. Not only this normalization, there's

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<v Speaker 6>an oversupply in the mid market space in terms of

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<v Speaker 6>software all the way from sales and marketing, even in

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<v Speaker 6>the HR and software and payroll space. So that's an issue.

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<v Speaker 6>I think the other issue here is that you don't

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<v Speaker 6>have a lot of churn from the large incumbents like

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<v Speaker 6>the ADP and the workday that was fuel for these

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<v Speaker 6>smaller mid market players to get a little boost to

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<v Speaker 6>their revenue growth. So I think, you know, there's an

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<v Speaker 6>issue here with the industry. There isn't a lot of buyers.

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<v Speaker 6>There's a lot of supply here, especially as you move

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<v Speaker 6>down market.

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<v Speaker 2>And I'm reading through it in the rush of the article,

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<v Speaker 2>and it seems like Toma Brobot has been pretty busy.

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<v Speaker 2>I mean, I'm seeing, you know, agreed to purchase Boeing

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<v Speaker 2>Companies flight navigation unit. But isn't this a pretty tough

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<v Speaker 2>time for private equity companies that are looking to deploy capital.

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<v Speaker 2>Can you talk about that and about some the action

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<v Speaker 2>that they've seen.

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<v Speaker 6>Yeah, when we look at Tomo Bravo's kind of past history,

0:10:07.679 --> 0:10:11.199
<v Speaker 6>they are one of the top application software and generally

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<v Speaker 6>software ecquisitors, and I think we've seen that pace slow

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<v Speaker 6>down over the last two years. Prices have come in,

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<v Speaker 6>but what they're targeting is more focused. They're looking for

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<v Speaker 6>these platforms that have a lot of AI opportunity, but

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<v Speaker 6>that needs to be leveraged and pulled out of the businesses.

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<v Speaker 6>Before application software was more steady, you sell on a

0:10:33.760 --> 0:10:38.320
<v Speaker 6>subscription type of basis. That business models in jeopardy, especially

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<v Speaker 6>as enterprise users leverage LMS to do more of the

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<v Speaker 6>job scope. So we're not sure where the future business

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<v Speaker 6>model goes. When you go off a dollar per user,

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<v Speaker 6>are you going to go on a consumption basis or

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<v Speaker 6>a token basis? So that's up in the air right now.

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<v Speaker 1>How are the.

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<v Speaker 5>Business conditions broadly defined nearage for your part of the

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<v Speaker 5>technology space, the application software space.

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<v Speaker 4>How are the fundamentals for your business? Fundamentals are stable.

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<v Speaker 4>We came into the year at about eleven and a

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<v Speaker 4>half percent sales growth for twenty twenty five. Over the

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<v Speaker 4>first two quarter quarters.

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<v Speaker 6>That has bumped up to about thirteen percent, so about

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<v Speaker 6>one hundred and fifty bases point lift. And the margins

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<v Speaker 6>they continue to leverage, reducing sales and marketing expenses, so

0:11:23.720 --> 0:11:26.280
<v Speaker 6>they're getting about a three hundred basis point lift on

0:11:26.440 --> 0:11:30.280
<v Speaker 6>operating profit margins, which average around twenty seven percent, So

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<v Speaker 6>pretty good stable financial models. The issue is this AI

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<v Speaker 6>overhang has knocked down these stocks. These stocks are down

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<v Speaker 6>on average eight percent, Application overall Software Universe and application

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<v Speaker 6>software is down twelve percent, and it's this AI risk

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<v Speaker 6>that's really clouded. Are they going to be able to

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<v Speaker 6>sell their software at the same pace and the same

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<v Speaker 6>dollar level or is it going to move and migrate

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<v Speaker 6>to an AI agent which is going to be doing

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<v Speaker 6>the software function.

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<v Speaker 2>In the last minute, so we have here left. Is

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<v Speaker 2>this one of tomar Brobo's biggest deals.

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<v Speaker 6>No, I think over the last couple of years. Yes,

0:12:10.120 --> 0:12:13.520
<v Speaker 6>it is definitely one of their biggest deals, and they're

0:12:13.520 --> 0:12:17.040
<v Speaker 6>not paying so so much relative to some past deals

0:12:17.040 --> 0:12:19.920
<v Speaker 6>that were in the seventy eight times in the software space.

0:12:21.400 --> 0:12:24.559
<v Speaker 5>Stay with us more from Bloomberg Intelligence coming up after this.

0:12:26.679 --> 0:12:30.400
<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

0:12:30.480 --> 0:12:33.559
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0:12:33.559 --> 0:12:36.880
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0:12:36.920 --> 0:12:40.480
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0:12:40.840 --> 0:12:42.400
<v Speaker 5>All Right, A piece of news that I kind of

0:12:42.520 --> 0:12:47.080
<v Speaker 5>found interesting today was Boeing China says they're gonna are

0:12:47.160 --> 0:12:50.120
<v Speaker 5>Boeing maybe they're in talks itself to five hundred planes

0:12:50.160 --> 0:12:52.840
<v Speaker 5>to China, and that's big. I mean, they're not giving

0:12:52.880 --> 0:12:54.959
<v Speaker 5>those things away there. Seems you're kind of expensive. And

0:12:55.000 --> 0:12:58.520
<v Speaker 5>it really opens back up potentially that Chinese market, which

0:12:58.520 --> 0:13:00.920
<v Speaker 5>has been challenging for or Boeing and some of the

0:13:00.920 --> 0:13:04.000
<v Speaker 5>other Western players, said Phillip Joints Us here Bloomberg, Chief

0:13:04.000 --> 0:13:06.080
<v Speaker 5>correspondent for Global Aviation. He Joints is here on a

0:13:06.080 --> 0:13:10.960
<v Speaker 5>Bloomberg Interactive broker studio here, So sid what's happening here

0:13:11.040 --> 0:13:12.320
<v Speaker 5>with Boeing in China.

0:13:12.920 --> 0:13:15.760
<v Speaker 7>So we understand that Boeing is in talks with China

0:13:15.920 --> 0:13:17.880
<v Speaker 7>for a large aircraft deal, which could be as many

0:13:17.920 --> 0:13:20.839
<v Speaker 7>as five hundred planes. And what we understand is that

0:13:20.880 --> 0:13:25.600
<v Speaker 7>the Chinese government is currently asking airlines in China what

0:13:25.679 --> 0:13:28.880
<v Speaker 7>their requirements are and sort of gauging the various options

0:13:28.920 --> 0:13:32.840
<v Speaker 7>for what sort of aircraft, what sort of size of aircraft,

0:13:32.920 --> 0:13:36.200
<v Speaker 7>what sort of range and everything, and then they potentially

0:13:36.240 --> 0:13:39.440
<v Speaker 7>could agree to a deal as part of a broader

0:13:39.480 --> 0:13:43.200
<v Speaker 7>reconciliation on trade between Trump and President she when they

0:13:43.320 --> 0:13:44.240
<v Speaker 7>meet in the fall.

0:13:45.080 --> 0:13:46.520
<v Speaker 5>Just a red headline want to get in there. The

0:13:46.600 --> 0:13:51.400
<v Speaker 5>DOJ official urges fed Pal to remove Governor Lisa Cook.

0:13:51.400 --> 0:13:52.800
<v Speaker 5>We'll have more reporting on that coming up.

0:13:52.960 --> 0:13:55.600
<v Speaker 2>That's interesting. Okay, Sid, a little bit of background, can

0:13:55.640 --> 0:13:58.040
<v Speaker 2>you give us? So this is like a sales route

0:13:58.040 --> 0:14:01.240
<v Speaker 2>stretches back to when US President Donald Trump last visit

0:14:01.320 --> 0:14:03.760
<v Speaker 2>in twenty seventeen. Can you paint the backstory for us?

0:14:03.880 --> 0:14:06.760
<v Speaker 7>Yes, So, Boying has been largely shut out of the U,

0:14:06.880 --> 0:14:09.719
<v Speaker 7>out of the Chinese market, and China is one of

0:14:09.800 --> 0:14:12.360
<v Speaker 7>the fastest growing aviation markets in the world, and Boeing

0:14:12.360 --> 0:14:15.720
<v Speaker 7>has been largely shut out partly because of trade tensions.

0:14:16.040 --> 0:14:18.480
<v Speaker 7>China was also the first country to ground the sevent

0:14:18.520 --> 0:14:21.920
<v Speaker 7>thry seven Max after those two fatal crashes back in

0:14:21.960 --> 0:14:25.960
<v Speaker 7>twenty nineteen, and so for Boeing, this is a sort

0:14:25.960 --> 0:14:29.080
<v Speaker 7>of massive step forward in terms of being able to

0:14:29.280 --> 0:14:33.320
<v Speaker 7>garner a new business instead of being able to challenge Airbus.

0:14:33.360 --> 0:14:36.640
<v Speaker 7>I mean Airbus has but we've reported yesterday that Airbus

0:14:36.640 --> 0:14:38.640
<v Speaker 7>is potentially going to win a five hundred plane order

0:14:38.640 --> 0:14:42.960
<v Speaker 7>from China as well. So China needs new airplanes. Airlines

0:14:43.000 --> 0:14:45.920
<v Speaker 7>in China are looking to replace alder Fleet. They're also

0:14:45.960 --> 0:14:49.760
<v Speaker 7>looking to get growth in and Comac, which is the

0:14:49.800 --> 0:14:53.440
<v Speaker 7>local Chinese company which is building a competitor to the

0:14:53.440 --> 0:14:56.880
<v Speaker 7>seventry seven and the Airbus A three twenty isn't yet

0:14:56.960 --> 0:14:59.200
<v Speaker 7>at scale, so they're not able to produce as many

0:14:59.240 --> 0:15:01.840
<v Speaker 7>planes as they would need to actually replace that market.

0:15:01.920 --> 0:15:03.960
<v Speaker 7>So it is a massive market for both.

0:15:04.000 --> 0:15:05.520
<v Speaker 5>Would you get on one of those planes? I haven't

0:15:05.520 --> 0:15:08.200
<v Speaker 5>heard about these planes? So all these Chinese planes.

0:15:08.040 --> 0:15:10.560
<v Speaker 7>So C nine one nine's is a competitor to the

0:15:10.560 --> 0:15:13.040
<v Speaker 7>E three twenty and it does have a lot of

0:15:13.040 --> 0:15:16.400
<v Speaker 7>Western components in it. So the engines are made by CFM,

0:15:16.760 --> 0:15:20.160
<v Speaker 7>which also makes engines for Boeing and Airbus, and it's

0:15:20.200 --> 0:15:22.720
<v Speaker 7>got avionics from Honeywell, so it's got a lot of

0:15:22.880 --> 0:15:26.800
<v Speaker 7>Western components in it. And this sort of ramp up

0:15:26.840 --> 0:15:29.000
<v Speaker 7>of the aircraft has been very very slow, so they

0:15:29.000 --> 0:15:31.200
<v Speaker 7>haven't actually been able to deliver many planes. I mean

0:15:31.200 --> 0:15:34.200
<v Speaker 7>they're still building them in the fives and tens of

0:15:34.440 --> 0:15:36.960
<v Speaker 7>a year, and so for the Chinese airlines they need

0:15:37.000 --> 0:15:38.880
<v Speaker 7>to replace them.

0:15:39.120 --> 0:15:41.680
<v Speaker 2>So what is this deal contingent apartment? What can make it?

0:15:41.720 --> 0:15:42.360
<v Speaker 5>What can break it?

0:15:42.400 --> 0:15:45.760
<v Speaker 7>So we understand that this deal is contingent on actually

0:15:45.920 --> 0:15:49.320
<v Speaker 7>a larger trade deal. I mean, remember President Trump has

0:15:49.440 --> 0:15:53.520
<v Speaker 7>used aircraft deals as a major bargaining chip for trade

0:15:53.560 --> 0:15:56.800
<v Speaker 7>deals and trade negotiations, and we saw that massive order

0:15:56.840 --> 0:15:59.600
<v Speaker 7>from Qatar when they announced the deal there, and when

0:15:59.640 --> 0:16:01.560
<v Speaker 7>he went in his midle East to he had lots

0:16:01.600 --> 0:16:05.360
<v Speaker 7>of aircraft deals, and so aircraft purchases have become a

0:16:05.480 --> 0:16:09.000
<v Speaker 7>very large part of trade in Trump's in Trump's economy,

0:16:09.040 --> 0:16:11.240
<v Speaker 7>and this would be a win for Trump if they

0:16:11.240 --> 0:16:13.360
<v Speaker 7>can actually get a deal across the line.

0:16:13.200 --> 0:16:17.440
<v Speaker 5>Where where is Boeing on the seven thirty seven max deliveries?

0:16:17.520 --> 0:16:20.080
<v Speaker 5>Because I know they're I don't know, thirty eight per

0:16:20.080 --> 0:16:21.680
<v Speaker 5>month or something, but they like to get it above

0:16:21.680 --> 0:16:23.160
<v Speaker 5>what do you like to get it to fifty? And

0:16:23.360 --> 0:16:25.840
<v Speaker 5>that's when the real cash flow really starts coming in.

0:16:25.840 --> 0:16:26.600
<v Speaker 5>Where are they these.

0:16:26.560 --> 0:16:28.800
<v Speaker 7>So Boeing's around thirty eight a month and that's where

0:16:28.840 --> 0:16:30.960
<v Speaker 7>the cap is at the moment, where the FA cap

0:16:31.000 --> 0:16:34.440
<v Speaker 7>deproduction I forgot after the door flew out last year,

0:16:34.560 --> 0:16:37.840
<v Speaker 7>and so it's a problem. They're trying to get production

0:16:37.960 --> 0:16:40.080
<v Speaker 7>back up and get it to a level where they

0:16:40.120 --> 0:16:42.800
<v Speaker 7>can actually start making money. And that's part of Kelly

0:16:42.800 --> 0:16:45.920
<v Speaker 7>Ottberg's turnaround effort to actually ramp up production off the

0:16:45.920 --> 0:16:49.320
<v Speaker 7>seven thury seven and actually start generating cash from that aircraft.

0:16:49.520 --> 0:16:52.040
<v Speaker 7>And so they are looking to sort of ramp up

0:16:52.160 --> 0:16:53.960
<v Speaker 7>beyond thirty eight a month by the end of the year,

0:16:54.440 --> 0:16:56.160
<v Speaker 7>and as they ended next year, they could sort of

0:16:56.240 --> 0:16:57.360
<v Speaker 7>see that going up further.

0:16:57.840 --> 0:16:59.800
<v Speaker 2>How are they doing against air boss, I mean, are

0:16:59.800 --> 0:17:01.640
<v Speaker 2>they doing better against the competition?

0:17:02.600 --> 0:17:05.080
<v Speaker 7>Not yet. I mean, Evers is still the world's biggest

0:17:05.480 --> 0:17:09.600
<v Speaker 7>aircraft supplier. They're still the world's biggest aircraft manufacturers the case.

0:17:09.680 --> 0:17:13.120
<v Speaker 7>I No, it hasn't. So I think they overtook Boeing

0:17:13.440 --> 0:17:15.200
<v Speaker 7>back in twenty eighteen or nineteen.

0:17:15.320 --> 0:17:16.040
<v Speaker 5>Yeah, I don't like that.

0:17:16.080 --> 0:17:19.000
<v Speaker 2>We need to get going back, get a new CEO,

0:17:19.400 --> 0:17:19.760
<v Speaker 2>you know.

0:17:19.840 --> 0:17:22.160
<v Speaker 5>So Boeing Okay, So just park on Lisa's question, Bob.

0:17:22.640 --> 0:17:25.159
<v Speaker 7>So boy is doing pretty well in terms of just

0:17:25.520 --> 0:17:28.280
<v Speaker 7>recovering from where the pit that they were in and

0:17:28.359 --> 0:17:31.399
<v Speaker 7>sort of the new CEO has focused on actually building

0:17:31.400 --> 0:17:34.760
<v Speaker 7>on quality. Is talked about how he's sort of encouraging

0:17:34.800 --> 0:17:37.920
<v Speaker 7>workers to speak up against any sort of quality misshaps

0:17:38.000 --> 0:17:41.640
<v Speaker 7>or any quality sort of issues, and so far it's

0:17:41.680 --> 0:17:45.879
<v Speaker 7>been a sort of big step forward for Boeing, but

0:17:45.880 --> 0:17:47.680
<v Speaker 7>they're still not out of the woods yet and they

0:17:47.720 --> 0:17:50.480
<v Speaker 7>still need to They did that massive equity raise last

0:17:50.560 --> 0:17:53.119
<v Speaker 7>year and they sort of showed up their balance sheet,

0:17:53.240 --> 0:17:56.399
<v Speaker 7>and we will look forward to seeing what actually happens

0:17:56.440 --> 0:17:58.239
<v Speaker 7>with Boeing end of the year and if they can

0:17:58.280 --> 0:18:00.800
<v Speaker 7>actually get their production beyond the thirty eight a month

0:18:00.840 --> 0:18:01.760
<v Speaker 7>on the seven three seven.

0:18:02.560 --> 0:18:07.280
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