WEBVTT - Snap's Sell-Off and Twitter's Upcoming AGM 0:00:03.200 --> 0:00:06.480 From the heart of where innovation, money and power COLLI 0:00:07.320 --> 0:00:11.840 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.880 --> 0:00:28.080 Emily Jay. I'm Emily Jack in San Francisco, and this 0:00:28.120 --> 0:00:31.080 is Bloomberg Technology. Coming up in the next hour, Snaps 0:00:31.240 --> 0:00:35.800 sell off shares plummeting as much on a disappointing forecast, 0:00:36.159 --> 0:00:39.880 catalyzing fresh turmoil in tech stocks. How much lower can 0:00:39.920 --> 0:00:44.520 they go? We will discuss plus Twitter's annual shareholder meeting 0:00:44.600 --> 0:00:48.360 coming up Wednesday, with Elon Musk still pressing pause on 0:00:48.479 --> 0:00:51.800 a deal he hasn't tweeted about it recently either, will 0:00:51.840 --> 0:00:57.240 preview what to expect. And California's landmark law requiring corporate 0:00:57.240 --> 0:01:01.160 boards to include women is ruled un constitutional. We're going 0:01:01.200 --> 0:01:04.800 to speak with California First partner Jennifer Siebel Newsom in 0:01:04.840 --> 0:01:07.720 an exclusive interview, her take on why we need more 0:01:07.760 --> 0:01:11.240 parity in the boardroom and the research that backs it up. 0:01:11.600 --> 0:01:12.920 We will get to all of that in a moment. 0:01:12.959 --> 0:01:15.720 The first stocks pairing their losses as a rebound in 0:01:15.920 --> 0:01:19.440 defensive companies offset a slide, and tech shares triggered by 0:01:19.520 --> 0:01:22.560 that profit warning from Snap shares plunging below the I 0:01:22.640 --> 0:01:26.119 p O price after cutting their revenue, profit forecast, taking 0:01:26.160 --> 0:01:29.240 other social media stocks and take more broadly down with it. 0:01:29.520 --> 0:01:33.920 Jasmine Edinburgh of Insider Intelligence joins us now with more So, Jasmine, 0:01:33.959 --> 0:01:36.120 just how bad does it get for Snap and the 0:01:36.200 --> 0:01:39.119 rest of social media? Well, we will be hard pressed 0:01:39.200 --> 0:01:42.400 to find any social platform that isn't struggling. In Q two. 0:01:42.720 --> 0:01:44.880 The headwinds that we were warned about in Q one 0:01:44.920 --> 0:01:48.000 have really turned into these gale force winds, and Snap 0:01:48.120 --> 0:01:50.880 along with Meta, are right in the path of this 0:01:50.960 --> 0:01:54.160 storm that is brewing now. Snap of course, is blaming 0:01:54.200 --> 0:01:57.480 macro economic conditions, and while that is certainly part of it, 0:01:57.840 --> 0:02:00.800 the reality is is that there is no shortage of 0:02:00.920 --> 0:02:04.240 challenges right now for the social media platforms, whether that's 0:02:04.240 --> 0:02:07.480 to do with ad targeting and online privacy, whether that 0:02:07.720 --> 0:02:10.760 is the war in Ukraine that is making advertisers wary 0:02:10.800 --> 0:02:13.960 of spending on social media, or whether that's the shift 0:02:14.080 --> 0:02:17.360 in social media usage that is really leaving these established 0:02:17.400 --> 0:02:20.800 players playing catch up to a newcomer called TikTok. So 0:02:20.919 --> 0:02:23.440 would you say TikTok is the one platform that's winning 0:02:23.560 --> 0:02:26.120 or are these dollars just going away across the board? 0:02:26.280 --> 0:02:28.760 You know, going back to this storm analogy, if there 0:02:28.880 --> 0:02:31.000 is one platform that is in the eye of the storm, 0:02:31.040 --> 0:02:33.320 I would say that that is TikTok. We've actually just 0:02:33.480 --> 0:02:36.800 released a new forecast at Insider Intelligence that shows that 0:02:36.840 --> 0:02:40.360 TikTok's AD revenues will more than double this year and 0:02:40.400 --> 0:02:43.760 in two it's ad revenues in the US is going 0:02:43.800 --> 0:02:47.480 to be more than Snapchat and Twitters combined. Would you 0:02:47.480 --> 0:02:50.320 say that this extends to not just Facebook and Twitter, 0:02:50.440 --> 0:02:53.519 but also YouTube for example? Will we continue to see 0:02:53.560 --> 0:02:56.720 what happened with YouTube last quarter again this quarter? Yeah, 0:02:56.760 --> 0:03:01.000 you know, these struggles really extend across all of social media. Now, 0:03:01.040 --> 0:03:04.200 YouTube is a major competitor to TikTok as well. Um, 0:03:04.240 --> 0:03:07.200 it's really Shorts of course, which is it's TikTok clone. 0:03:07.440 --> 0:03:09.880 But we're seeing that even you know, time that would 0:03:09.880 --> 0:03:12.600 be spent on on YouTube, not within shorts, is going 0:03:12.639 --> 0:03:15.959 towards TikTok. So there's definitely some competition there as well. 0:03:16.919 --> 0:03:19.280 So yeah, I heard one of the skeptics today saying, look, 0:03:19.280 --> 0:03:21.840 why should I be worried about all of tech or 0:03:21.840 --> 0:03:24.600 really the rest of the markets just because Snap missed 0:03:24.600 --> 0:03:28.160 its guidance. How would you respond to that well, you know, 0:03:28.280 --> 0:03:30.679 it is a clear signal within the market that there 0:03:30.720 --> 0:03:33.639 are these real issues that these social platforms are challenging, 0:03:33.800 --> 0:03:36.680 are are are struggling with. You know, Snap is certainly 0:03:36.720 --> 0:03:38.680 not the only one that has to grapple with all 0:03:38.720 --> 0:03:41.120 of these problems. A lot of the larger ad players, 0:03:41.160 --> 0:03:44.240 including Meta, are also dealing with the same ones. And 0:03:44.280 --> 0:03:48.200 if it's impacting a platform like Snap, which has performed 0:03:48.280 --> 0:03:50.840 relatively well over the past couple of quarters, you know, 0:03:51.000 --> 0:03:53.560 it does show some warning signs for the rest of 0:03:53.600 --> 0:03:57.160 these social platforms as well. Speaking of the rest of 0:03:57.160 --> 0:04:00.520 these social platforms, we're looking ahead to Twitter's annual shareholder 0:04:00.560 --> 0:04:05.720 meeting coming up tomorrow. Twitter stuck between Snap and Elon 0:04:05.840 --> 0:04:10.000 Musk and this broader market meltdown. What are you expecting 0:04:10.000 --> 0:04:12.560 to happen at this meeting, Well, I think it will 0:04:12.560 --> 0:04:15.120 be a pretty tense meeting, you know. I mean the 0:04:15.120 --> 0:04:17.200 big two big topics, of course, are going to be 0:04:17.360 --> 0:04:20.200 Musk as well as the macroeconomic conditions that are really 0:04:20.240 --> 0:04:23.039 putting pressure on the social media platforms. Now, these two 0:04:23.040 --> 0:04:26.440 things are separate, but they're also related. The more that 0:04:26.520 --> 0:04:29.760 Twitter takes a hit, the more fuel Musk has to 0:04:29.960 --> 0:04:33.480 perhaps renegotiate his position, even walk away from the deal, 0:04:33.600 --> 0:04:36.080 and if he does that, he will take his lofty 0:04:36.120 --> 0:04:40.120 plans of making Twitter less reliant on advertising with him. 0:04:40.160 --> 0:04:42.320 And that's going to leave Twitter in pretty much the 0:04:42.360 --> 0:04:44.680 same position that it has been for a long time now, 0:04:44.720 --> 0:04:47.640 which is under performance, and it's going to be competing 0:04:47.720 --> 0:04:50.920 with all of these other social platforms, many of which 0:04:51.000 --> 0:04:54.960 have um larger ad businesses um and in an incredibly 0:04:55.000 --> 0:04:59.440 turbulent market. All right, Jasmine Enberg insider intelligence. Jasmin always 0:04:59.480 --> 0:05:03.080 appreciate how your thoughts here on the show. Thank you. Meantime, 0:05:03.120 --> 0:05:06.479 another story, we continue to watch Elon Musk's other company, Tesla, 0:05:06.680 --> 0:05:09.920 isolating thousands of workers in China to make sure they 0:05:09.920 --> 0:05:12.760 are COVID free. This is part of a large scale 0:05:12.760 --> 0:05:15.640 plan by the electric car maker to ramp up production 0:05:16.040 --> 0:05:19.320 at its planet in Shanghai after weeks of lockdown. These 0:05:19.320 --> 0:05:22.320 workers are being housed in unused factories and an old 0:05:22.400 --> 0:05:25.280 military camp, and they'll be allowed to join other workers 0:05:25.360 --> 0:05:28.880 inside the production bubble after a two to three day 0:05:28.960 --> 0:05:41.800 quarantine in accordance with government orders. Twitter's annual meeting kicks 0:05:41.800 --> 0:05:44.320 off Wednesday, and the company continues to find itself and 0:05:44.400 --> 0:05:46.640 quite the match. On one side of the ring stands 0:05:46.640 --> 0:05:49.240 Elon Musk, which with his offer to buy the platform 0:05:49.360 --> 0:05:52.360 on pause while he investigates the number of fake accounts. 0:05:52.720 --> 0:05:55.080 On the other, a tech market meltdown in the wake 0:05:55.160 --> 0:05:58.440 of Snap cutting its forecast to talk about what could 0:05:58.440 --> 0:06:01.440 come out of tomorrow's meeting. Joining us now Jason Goldman, 0:06:01.480 --> 0:06:03.920 one of the founding members of Twitter and former White 0:06:03.920 --> 0:06:07.840 House Chief Digital Officer under President Obama. Jason, I'm sure 0:06:07.880 --> 0:06:10.640 you've been through a few Twitter annual meetings and this 0:06:10.839 --> 0:06:15.480 will surely be unlike any other. What are you expecting. Yeah, 0:06:15.520 --> 0:06:19.159 this sort of feels like the Ragnarok of Twitter annual meetings, 0:06:19.160 --> 0:06:22.840 where there's there's only sort of one option that shareholders 0:06:22.839 --> 0:06:24.880 are looking for, which is to know that the deal 0:06:25.040 --> 0:06:27.400 is going to go through, because now the deal price 0:06:27.440 --> 0:06:29.720 looks like this amazing deal and the rest of the 0:06:29.760 --> 0:06:32.280 world has melted down, and I think the questions are 0:06:32.279 --> 0:06:34.520 just going to be can I get my money now? 0:06:35.400 --> 0:06:40.080 And can Twitter board really answer that question? I think 0:06:40.120 --> 0:06:42.240 the most important answer they can assert is that there's 0:06:42.279 --> 0:06:44.120 no such thing as the deal being on hold that 0:06:44.160 --> 0:06:45.880 they and this is what the g c F just 0:06:46.000 --> 0:06:48.719 said in a in a Twitter meeting, the contents of 0:06:48.720 --> 0:06:50.880 which was leaked that there's no such thing as the 0:06:50.880 --> 0:06:53.000 deal being on hold. We have a deal for the 0:06:53.000 --> 0:06:55.039 price that we agreed to, and we are going We 0:06:55.080 --> 0:06:58.799 are committed to executing this deal, and we will force 0:06:58.880 --> 0:07:01.279 compliance and execution of this deal if we have to. 0:07:02.120 --> 0:07:06.080 So is Elon Musk just blessing? Well, I don't know. 0:07:06.120 --> 0:07:08.159 I think it's interesting that he's been quiet on Twitter 0:07:08.240 --> 0:07:10.920 for the last little while about this. I maybe, you know, 0:07:11.000 --> 0:07:14.160 losing seventy billion dollars of your own net worth by 0:07:14.640 --> 0:07:17.600 by posting about Twitter proved to be even a little 0:07:17.600 --> 0:07:20.480 expensive for the world's richest man. Or he just figured 0:07:20.520 --> 0:07:22.400 he was just creating more work for his lawyers in 0:07:22.440 --> 0:07:25.480 the inevitable litigation that comes out of this. But I 0:07:26.040 --> 0:07:29.120 think that he doesn't. I think sometimes folks think that 0:07:29.160 --> 0:07:32.440 there's these you know, plans within plans or faints within faints, 0:07:32.440 --> 0:07:35.080 and there's this five dimensional chess that people are playing. 0:07:35.280 --> 0:07:38.080 And I really think that Ellen realized that a lot 0:07:38.120 --> 0:07:40.520 of his argument about why he was buying the company 0:07:40.600 --> 0:07:43.080 just wasn't holding water, and he was taking heat from 0:07:43.160 --> 0:07:45.320 so many sides that he realized it would maybe just 0:07:45.320 --> 0:07:47.440 be better to be a little quiet about this uh 0:07:47.480 --> 0:07:50.120 and hope for a better position later. We've also learned 0:07:50.160 --> 0:07:52.480 more details about just how this deal came about, How 0:07:52.520 --> 0:07:55.600 it started with Ellen talking to Jack directly, then became 0:07:55.640 --> 0:07:59.120 a discussion about him joining the board fairly quickly. What 0:07:59.200 --> 0:08:03.280 do you find most significant about the timeline? I mean, 0:08:03.320 --> 0:08:05.800 this is all from Twitter's proxy filing. This isn't based 0:08:05.800 --> 0:08:08.400 on internal reporting or any sort of confidential sources. This 0:08:08.440 --> 0:08:12.240 is according to Twitter, Twitter's own executives and board and lawyers. 0:08:12.280 --> 0:08:14.440 What happened, and what happened according to them, was that 0:08:14.520 --> 0:08:17.600 Jack and Ellen initiate a conversation on March twenty six 0:08:17.720 --> 0:08:20.720 to pursue a strategy of Ellen says I'm interested in 0:08:20.760 --> 0:08:23.680 buying some shares. I wanna uh, and Jack says, okay, 0:08:23.840 --> 0:08:25.440 let's turn it over to the board and we can 0:08:25.480 --> 0:08:28.080 see about getting you on the board. He's puts them 0:08:28.080 --> 0:08:31.720 in conversation with Parrague and with Brett Taylor, the hand 0:08:31.720 --> 0:08:33.439 picked folks that Jack has said is going to lead 0:08:33.440 --> 0:08:36.120 the company to the next level of execution, and they 0:08:36.200 --> 0:08:39.439 agree to a standstill provision that prevents Ellen for acquiring 0:08:39.440 --> 0:08:42.319 more shares, and they agree to put Ellen on the board. 0:08:42.320 --> 0:08:46.320 They execute this agreement with Ellen on the fourth of April. 0:08:46.559 --> 0:08:49.040 The next day, on the fifth of April, they announced 0:08:49.040 --> 0:08:52.360 this deal. The very same day, Jack re enters the 0:08:52.400 --> 0:08:55.560 picture with Ellen and has a conversation with him in which, 0:08:55.600 --> 0:08:57.800 according to the filing, he shared his personal view that 0:08:57.800 --> 0:09:00.679 Twitter would be better able to focus on execution as 0:09:00.679 --> 0:09:03.199 a private company, and then the deal is completely off 0:09:03.240 --> 0:09:04.920 to put Ellen on the board, and Ellen says he 0:09:04.960 --> 0:09:06.800 wants to take it to be a private company. So 0:09:06.880 --> 0:09:10.240 that that, to me is just a clear backstabbing of 0:09:10.280 --> 0:09:13.640 the board by the founder when they had a deal 0:09:13.679 --> 0:09:16.880 in hand to come to a standstill. So do you 0:09:16.920 --> 0:09:20.640 think there should be any consequences to that if you 0:09:20.760 --> 0:09:26.320 believe that, as you're saying Jack backstabbed the board, what 0:09:26.400 --> 0:09:28.080 I'm saying is that we need to look at we 0:09:28.120 --> 0:09:29.840 need to look at the comments that Jack has made 0:09:29.840 --> 0:09:32.600 here previously. He's always been committed to this notion of 0:09:32.600 --> 0:09:35.520 Twitter should exist as a protocol and not a platform 0:09:35.600 --> 0:09:37.480 or a company, and that he's also said later that 0:09:37.520 --> 0:09:39.520 the board is the is the greatest dysfunction in the 0:09:39.559 --> 0:09:41.920 history of the company, and that there shouldn't be a CEO. 0:09:42.280 --> 0:09:45.160 But somehow he convinced himself that he's going to turn 0:09:45.280 --> 0:09:48.160 over this company to the world's richest man as a 0:09:48.200 --> 0:09:52.839 way of achieving this glorious decentralized transition to a protocol 0:09:53.280 --> 0:09:55.480 that to me, that to me just doesn't make a 0:09:55.520 --> 0:09:58.280 lot of sense. And there's nothing that Ellen has said 0:09:58.480 --> 0:10:01.640 that shows that he's committed to Protocol Future. In fact, 0:10:01.679 --> 0:10:04.920 he published this fairly ridiculous business plan that shows the 0:10:05.000 --> 0:10:06.720 type of product that he wants to build on the 0:10:06.760 --> 0:10:08.840 other side of this acquisition. And so I think the 0:10:08.920 --> 0:10:10.480 questions that I would ask if I were at the 0:10:10.480 --> 0:10:13.280 shareholder meeting is what was really going on in those 0:10:13.280 --> 0:10:16.280 conversations between Ellen and Jack and Ellen and the board, 0:10:16.320 --> 0:10:19.480 because I think that really affects the shareholder value here. Now, 0:10:19.600 --> 0:10:22.120 last time you joined us, you said you felt that 0:10:22.160 --> 0:10:25.280 Twitter faced a not good outcome either way. Do you 0:10:25.320 --> 0:10:29.280 still believe that, given that the price that Ellen and 0:10:29.440 --> 0:10:31.600 Twitter agreed on is actually much higher than the price 0:10:31.600 --> 0:10:34.000 at which Twitter is trading at today, it would be 0:10:34.000 --> 0:10:37.120 a great outcome for shareholders of Twitter. That's that's undisputed, 0:10:37.160 --> 0:10:38.960 And like you know, you can't. I thought Jasmine did 0:10:38.960 --> 0:10:41.120 a great job table setting sort of the vibe that's 0:10:41.160 --> 0:10:43.280 out here right now in the valley in terms of 0:10:43.320 --> 0:10:46.319 what we're headed into. It's very much a two thousand 0:10:46.480 --> 0:10:50.240 dot bust feeling in the air. And you know, graybeards 0:10:50.280 --> 0:10:53.920 like myself are sort of counseling younger folks talking about 0:10:53.960 --> 0:10:56.160 the last bust as though it was the dust bowl 0:10:56.240 --> 0:10:58.560 or something, and you know, like when we didn't have crawdad, 0:10:58.640 --> 0:11:00.880 we ate sand and here's how survive and all this 0:11:00.960 --> 0:11:03.480 like sort of received wisdom from the last of the 0:11:03.559 --> 0:11:05.720 last bus. And so there's a lot of there's a 0:11:05.720 --> 0:11:08.120 lot of feeling that this is would be a great 0:11:08.280 --> 0:11:11.440 outcome for shareholders. It's, however, not a great outcome for 0:11:11.480 --> 0:11:14.440 the product. It's not a great outcome for employees. So 0:11:14.559 --> 0:11:16.880 because Ellen's plans for what he would do with it 0:11:16.920 --> 0:11:19.160 have proven to be so un serious that he's just 0:11:19.200 --> 0:11:22.240 simply shut up about them on Twitter altogether. How worried 0:11:22.240 --> 0:11:24.800 about are you about the future of social media in general? 0:11:24.920 --> 0:11:27.439 Given what we just saw with Snap and what Jasmine 0:11:27.480 --> 0:11:30.319 had to say about slowing user growth, Is that coming 0:11:30.920 --> 0:11:33.720 for Twitter? Yes? I I think that's coming. I think 0:11:33.760 --> 0:11:36.360 that is a real macroeconomic effect, and I think there 0:11:36.520 --> 0:11:39.679 is some validity to the point that the social media 0:11:39.720 --> 0:11:42.040 moment that we've had for the last fifteen years is 0:11:42.080 --> 0:11:44.520 reaching some sort of endpoint, particularly in terms of how 0:11:44.520 --> 0:11:46.680 it's valued by the stock market, but maybe even just 0:11:46.760 --> 0:11:49.680 more generally in terms of what users want, and maybe 0:11:49.720 --> 0:11:53.080 folks migrate instead, and instead of being in these arenas 0:11:53.080 --> 0:11:55.760 of public combat where you have to contend with you know, 0:11:55.840 --> 0:11:58.240 just everyone all at once, maybe folks are looking for 0:11:58.360 --> 0:12:01.439 more private experiences, are semi public experiences, and maybe there's 0:12:01.480 --> 0:12:04.520 a new evolution of social media to come. As as 0:12:04.559 --> 0:12:07.800 someone who's not a shareholder and not employee, this is 0:12:07.800 --> 0:12:11.439 actually somewhat exciting to me because I think we've been 0:12:11.440 --> 0:12:14.480 in a frozen moment for social media and user experience 0:12:14.520 --> 0:12:17.239 and it would be great to see some new experiences 0:12:17.320 --> 0:12:19.320 come out of this. And as we know, a lot 0:12:19.360 --> 0:12:22.400 of the best companies have been built during these downturns 0:12:22.400 --> 0:12:25.120 have been built in the wake of these big corrections, 0:12:25.120 --> 0:12:27.160 so that is a potential upside to all of this. 0:12:27.720 --> 0:12:29.400 All right, well, we will be watching as it all 0:12:29.440 --> 0:12:32.920 goes down tomorrow at the meeting. Jason Goldman, one of 0:12:32.960 --> 0:12:35.680 the founding members of Twitter, former White House Chief Digital Officer, 0:12:35.679 --> 0:12:38.760 are always great to have your colorful metaphors here on 0:12:38.800 --> 0:12:43.240 the show, Jason, thank you. Meantime, Walmart and its partner 0:12:43.440 --> 0:12:46.680 drone Up plan to expand their drone delivery hubs to 0:12:46.840 --> 0:12:48.880 six states by the end of the year. The idea 0:12:49.080 --> 0:12:51.880 is that you can have anything you order, from toothpaste, 0:12:52.000 --> 0:12:54.640 diapers to hot dog buns delivered for three dollars and 0:12:55.280 --> 0:12:58.000 cents as long as it's under ten pounds. Still, there 0:12:58.000 --> 0:13:01.800 are big regulatory hurdles. Fa A rules to clear such 0:13:01.880 --> 0:13:06.400 deliveries have yet to be written. Coming up, Zoom is 0:13:06.480 --> 0:13:10.800 showing signs it can turn its pandemic boom into post 0:13:10.960 --> 0:13:15.480 pandemic growth. We'll talk to the company's CFO, Kelly Steckelberg. Next. 0:13:15.640 --> 0:13:31.720 This is Gloomberg, a rare bright spot in the markets today, Zoom, 0:13:31.720 --> 0:13:35.079 which reported progress on customer growth. The video conferencing giant 0:13:35.080 --> 0:13:37.720 projecting revenue will increase about ten percent in the current 0:13:37.800 --> 0:13:41.160 current period, better than analysis estimates, but still see its 0:13:41.400 --> 0:13:45.840 slowest quarterly sales growth. Joom CFO Kelly Stuckelberg joins us 0:13:45.880 --> 0:13:49.080 now and Kelly Zoom shares up on the day, which 0:13:49.080 --> 0:13:52.320 I'm sure is welcome news given almost everything else is 0:13:52.320 --> 0:13:55.120 in the red. How is it that Zoom has been 0:13:55.160 --> 0:13:59.600 April to weather these macroeconomic forces that Snap, for example, 0:13:59.760 --> 0:14:05.280 has not well. Emily, we are successfully transitioning from being 0:14:05.320 --> 0:14:07.800 this killer meeting app that everybody came to no one 0:14:07.840 --> 0:14:11.760 loved during the pandemic, to an indispensable platform that is 0:14:11.800 --> 0:14:15.520 comprised of not only Zoom Meetings, but also Zoom Phone, 0:14:15.640 --> 0:14:18.520 which had an amazing quarter. We crossed over the three 0:14:18.600 --> 0:14:22.040 million seats sold for Zoom Phone as well as Zoom 0:14:22.080 --> 0:14:25.000 contact Center, our new product it was just recently re 0:14:25.040 --> 0:14:29.160 released and had some great customer wins. And then Zoom Rooms, 0:14:29.200 --> 0:14:31.520 which is going to be a really indispensable part of 0:14:31.760 --> 0:14:35.840 organization strategy as they're navigating what the future of hybrid 0:14:35.880 --> 0:14:38.120 work flight looks like and trying to make that as 0:14:38.160 --> 0:14:42.680 inclusive as possible. So all of that together, um, you know, 0:14:42.720 --> 0:14:46.000 resulted in a strong quarter. So I wonder if it's 0:14:46.000 --> 0:14:48.120 time to get a little bolder. I mean, you did 0:14:48.160 --> 0:14:52.120 recently purchase Solvy, but you still have six billion dollars 0:14:52.120 --> 0:14:55.520 in cash on your balance She should we be expecting 0:14:55.560 --> 0:14:59.240 you to make more deals? Yeah, so we're really excited. 0:14:59.240 --> 0:15:03.200 Were recently close Solving which will bring conversational AI into 0:15:03.280 --> 0:15:06.120 our Contact center so welcome to that team. And this 0:15:06.200 --> 0:15:08.560 is absolutely a really important part of our strategy. As 0:15:08.560 --> 0:15:11.080 you said, we have a very strong balance sheet and 0:15:11.240 --> 0:15:14.200 are looking towards M and A to continue to accelerate 0:15:14.240 --> 0:15:18.680 both our technology as well as our talent acquisition. And 0:15:18.720 --> 0:15:21.720 then we also are in the middle of a stock 0:15:21.720 --> 0:15:24.520 repurchase program. Our board approved a billion dollars that we 0:15:24.560 --> 0:15:29.280 are executing against um huntering two million of stock with repurchase. 0:15:29.360 --> 0:15:32.840 Last quarter, you did say you're starting to see the 0:15:32.880 --> 0:15:36.920 impact of the war on Ukraine on sales in Europe, 0:15:36.960 --> 0:15:38.440 and I'm wondering if you can give us any more 0:15:38.480 --> 0:15:42.880 details on that. Sure, So, we certainly saw some headwinds 0:15:43.040 --> 0:15:47.320 in our online segment of our business, and largely related 0:15:47.400 --> 0:15:52.440 to the war in Russian Ukraine as well as FX 0:15:52.680 --> 0:15:57.000 and so combined we in our guidance we indicated that 0:15:57.000 --> 0:15:59.680 that's having about a one we sent impact of revenue. 0:16:00.320 --> 0:16:02.600 And you know this is due to the sanctions that 0:16:02.640 --> 0:16:05.640 we're seeing as well at in Russia specifically, as well 0:16:05.680 --> 0:16:08.800 as the overall impact in Europe I think due to 0:16:09.000 --> 0:16:12.680 uncertainty and that region is certainly having a dampening effect 0:16:12.760 --> 0:16:17.520 on our online sayingment of our business. Meantime, Microsoft teams 0:16:18.040 --> 0:16:22.200 seems to be gaining market share in video conferencing. What's 0:16:22.240 --> 0:16:27.520 the plan to continue to fend them off? So we 0:16:27.640 --> 0:16:33.880 have a natively built platform that brings together audio, video, chat, 0:16:34.400 --> 0:16:37.000 contact center, and all of that brings a lot of 0:16:37.080 --> 0:16:39.640 value to our customers. And every single day we're focusing 0:16:39.720 --> 0:16:43.280 on delivering happiness to them by bringing them a lot 0:16:43.320 --> 0:16:47.800 of value in this natively built platform. And we are 0:16:47.840 --> 0:16:51.120 continued to innovate. We are investing and hiring in R 0:16:51.160 --> 0:16:54.160 and D on a global basis and continuing to listen 0:16:54.160 --> 0:16:56.520 to our customers and build the products that they need, 0:16:56.640 --> 0:17:01.200 especially especially in this ever evolving world of work today. 0:17:01.600 --> 0:17:04.600 And you're also planning to incorporate more AI features, but 0:17:04.680 --> 0:17:08.000 privacy advocates seem to have a problem with some of 0:17:08.040 --> 0:17:11.680 these new ideas. What's been your response to that. So 0:17:11.920 --> 0:17:15.600 we're really focused on bringing AI into our products to 0:17:15.720 --> 0:17:21.720 do things like live transcripts, um also analysis after the meeting. 0:17:21.760 --> 0:17:24.560 And this is really helpful in terms of one of 0:17:24.600 --> 0:17:27.720 our new products as well, zoom i Q for sales, 0:17:28.240 --> 0:17:31.560 and this is really helpful the organizations as they're trying 0:17:31.560 --> 0:17:35.800 to make their sales teams more productive and make sure 0:17:35.880 --> 0:17:38.360 that they're focusing on the right things in their meetings, 0:17:38.840 --> 0:17:41.880 and we are very thoughtful we think about bringing any 0:17:41.920 --> 0:17:45.280 new feature to the market, and we'll continue to do 0:17:45.320 --> 0:17:48.280 so in the area of AI. All Right, Keli Steckelberg, 0:17:48.480 --> 0:17:52.080 CFO of zoom Kelly, thank you so much for joining us, 0:17:52.359 --> 0:17:53.680 and I want to give you an update right now 0:17:53.680 --> 0:17:56.720 on some breaking news coming out of Texas and that 0:17:56.920 --> 0:18:01.560 devastating shooting at an elementary school and you'll al d Texas. 0:18:02.080 --> 0:18:04.359 We've just been listening into a press conference by Governor 0:18:04.520 --> 0:18:10.040 Greg Abbott who confirmed, uh, fifteen people were killed, most 0:18:10.080 --> 0:18:13.680 of them children, elementary school children. The shooter in eighteen 0:18:13.720 --> 0:18:17.359 year old was killed by responding police officers. A couple 0:18:17.400 --> 0:18:20.640 of those officers were shot but not hurt. Seriously, We're 0:18:20.640 --> 0:18:24.320 continuing to cover the headlines as we get them coming 0:18:24.400 --> 0:18:28.960 in from Uvaldi, Texas at that elementary school and an 0:18:29.040 --> 0:18:33.680 absolutely horrific shooting. More come up next on the show. 0:18:33.880 --> 0:18:40.440 This is Bloomberg. Welcome back to Bloomberg Technology. We're continuing 0:18:40.480 --> 0:18:43.680 to cover this breaking news out of Uvaldi, Texas, where 0:18:43.760 --> 0:18:48.440 fifteen people have been killed by an eighteen year old shooter. 0:18:48.640 --> 0:18:52.400 Fourteen of those fifteen dead as we understand it at 0:18:52.400 --> 0:18:56.760 this point, our elementary school children in addition to a teacher. 0:18:56.840 --> 0:18:59.879 We're continuing to wait for more details as we have 0:19:00.000 --> 0:19:03.919 of them. The shooter was shot and killed by police, 0:19:03.960 --> 0:19:06.240 and we're going to continue to follow this developing story 0:19:06.280 --> 0:19:08.800 and bring you um more headlines. I do want to 0:19:08.800 --> 0:19:11.720 get back to the markets now with our Ridika Gupta. 0:19:11.960 --> 0:19:16.479 Ridika walk us through the movers on the day. Yes, Emily, well, 0:19:16.520 --> 0:19:18.639 you do have a down day for US stocks, but 0:19:18.680 --> 0:19:20.760 we really did see some of those losses start to 0:19:20.760 --> 0:19:22.560 be a raise towards the end of the session, So 0:19:22.600 --> 0:19:25.399 you saw the SMP five closing less than one percent 0:19:25.520 --> 0:19:28.520 lower that we saw some of those defensive sectors starting 0:19:28.880 --> 0:19:31.760 to perform higher. But of course then AzaC one hundred 0:19:31.880 --> 0:19:34.480 was the under performer today, being waved down by some 0:19:34.560 --> 0:19:38.040 of those heavyweights Tesla Apple. But we did see really 0:19:38.080 --> 0:19:41.280 that safe Hayden bid coming into the treasury space, so 0:19:42.320 --> 0:19:45.600 forty portfolio perhaps having a good day to day relatively 0:19:45.600 --> 0:19:48.119 as we start to see some normalcy coming back in 0:19:48.200 --> 0:19:51.399 between that correlation. But of course, really what was driving 0:19:51.400 --> 0:19:55.560 the sentiment surprisingly was snapped and I say surprisingly because 0:19:55.680 --> 0:19:57.679 it's not the biggest company, and it's not even in 0:19:57.720 --> 0:20:00.679 the SMP five hundred emily, but it did plunge some 0:20:00.800 --> 0:20:04.600 forty or more in fact on that session today. And 0:20:04.640 --> 0:20:09.080 I did warn about the ad revenues going forward, and 0:20:09.160 --> 0:20:12.119 it really is that macro environment that it was warning 0:20:12.160 --> 0:20:15.639 about profit margins, inflation, and of course fears of a 0:20:15.720 --> 0:20:20.480 slowdown lower consumer demand that could reduce the advertising spending 0:20:20.520 --> 0:20:23.320 because of course, in terms of recession, that's usually what 0:20:23.400 --> 0:20:26.119 companies are first to slash their budgets on. And you 0:20:26.160 --> 0:20:29.520 see that really seeping in into those social media stocks today. 0:20:29.560 --> 0:20:33.360 Pinterest down some twenty four percent in today's session, Twitter 0:20:33.440 --> 0:20:36.920 down as well, these companies social media stocks as a 0:20:36.960 --> 0:20:39.359 whole today wiping off more than a hundred and sixty 0:20:39.359 --> 0:20:43.560 billion dollars worth of the market value today. But it's surprising, 0:20:43.560 --> 0:20:46.720 and I say surprising how surprise investors were in fact, 0:20:46.720 --> 0:20:48.879 because if I look at all of these names on 0:20:48.920 --> 0:20:51.119 this board behind me there, they are all down in 0:20:51.119 --> 0:20:53.760 the double digits on a year to date basis because 0:20:53.880 --> 0:20:57.679 social media stocks haven't had the best start off to 0:20:57.720 --> 0:20:59.520 the year. And you flip up the board, I'll show 0:20:59.560 --> 0:21:02.480 you a chart really indicating that you see social media 0:21:02.520 --> 0:21:05.280 group here that is that white line on the chart here. 0:21:05.280 --> 0:21:07.840 It is now trading back at some of those pre 0:21:08.040 --> 0:21:12.040 pandemic levels that we saw. And this is quite the change. 0:21:12.040 --> 0:21:16.000 I mean, it's now trailing the SPA the thing back 0:21:16.040 --> 0:21:19.679 to the height of the pandemic. Stay at Homestock, social 0:21:19.680 --> 0:21:23.680 media was really soaring. It really was one of the outperformers, 0:21:23.720 --> 0:21:26.400 shall we say. But now with that reopening, with those 0:21:26.440 --> 0:21:29.520 fears of a slowdown what that could mean for advertising revenues, 0:21:29.760 --> 0:21:35.119 we see that invest invested sentiment has really started to sour. Emily, indeed, 0:21:35.200 --> 0:21:39.520 Ridika Kupta, thank you. Meantime, late last week, a Los 0:21:39.560 --> 0:21:45.119 Angeles Superior Court judge invalidated a California law that required 0:21:45.440 --> 0:21:48.840 gender parody on corporate boards set a bill eight to 0:21:49.119 --> 0:21:53.040 six was signed in the laween by then Governor Jerry Brown, 0:21:53.119 --> 0:21:57.320 making California the first state to require publicly traded companies 0:21:57.359 --> 0:22:01.280 to include women on their boards, a law that judge 0:22:01.680 --> 0:22:04.880 found to be unconstitutional. Here with me to talk about 0:22:04.920 --> 0:22:08.800 that and more is California's first Partner, Jennifer Siebelnusom, who 0:22:08.800 --> 0:22:12.440