Speaker 1: Yeah, from the heart of where innovation, money and power
Speaker 1: collive in Silicon Valley and beyond. This is Bloomberg Technology
Speaker 1: with Emily Jay. I'm Emily Chang in San Francisco, and
Speaker 1: this is Bloomberg Technology coming up in the next hour.
Speaker 1: Volatility continues to grip global financial markets as the U
Speaker 1: S and the UK cut off, Russian oil stocks, bonds
Speaker 1: tech swinging wildly. We'll bring you the market moves class.
Speaker 1: Apple unveils a new five g iPad and iPhone with
Speaker 1: its faster signature chip. But how will the global economic uncertainty, inflation,
Speaker 1: rising gas prices impact consumer demand? We'll discuss and Mandy
Speaker 1: and off the market. Google beats out Microsoft and its
Speaker 1: second biggest acquisition. Ever, how this chang changes the cyber
Speaker 1: defense landscape with Ukraine and Russia related hack attacks on
Speaker 1: the rise. The new iPhone sc brings the advanced features
Speaker 1: and exceptional performance of a fifteen to our most affordable iPhone.
Speaker 1: It's going to be great for existing iPhone users who
Speaker 1: want to highly capable and compact iPhone and for new
Speaker 1: users who want to experience iPhone for the first time.
Speaker 1: Apple CEO Tim Cook there at the company's first product
Speaker 1: event kicking off what's likely to be its most prolific
Speaker 1: year yet for new product releases, I want to break
Speaker 1: the event down with Juliasca Forster Research on our very
Speaker 1: own Mark German. So, Mark, we got a new iPhone,
Speaker 1: new iPad air, we got the the M one chip
Speaker 1: in more products. Talked to us about the most significant
Speaker 1: updates we saw today. Yeah, I think the two most
Speaker 1: significant product that we we saw today was the new
Speaker 1: iPhone SC as well as the Max Studio next to
Speaker 1: your display, I'll consider that, you know, one combined product line.
Speaker 1: So starting with the SC, I think that's significant because
Speaker 1: I think it's going to bring over a lot of
Speaker 1: switchers to the iPhone, particularly people who want to get
Speaker 1: a somewhat low priced five G phone. Right, I think
Speaker 1: the big news for the SC is five G. Now,
Speaker 1: I'm not at the school thought that thanks five G
Speaker 1: has really moved the needle in terms of performance, but
Speaker 1: I do believe five G has been an extremely key
Speaker 1: marketing term for Apple, Samsung and other phonemakers and of
Speaker 1: course the carriers you know, for the most part, So
Speaker 1: I think that is going to drive some interest. Now
Speaker 1: the Max Studio. In the Max Studio display. I think
Speaker 1: the display at six is going to do fairly well.
Speaker 1: Consumers have been looking for an Apple design Apple sold
Speaker 1: display since they discontinued their own cinema displays several years ago,
Speaker 1: I think about six years ago. At this point, at six,
Speaker 1: it's about a third of the price of their five
Speaker 1: to six thousand dollar Pro display XTR. So I think
Speaker 1: that is going to be a very nice offering. This
Speaker 1: new M one Ultra chip, I think is really going
Speaker 1: to give Intel run for its money on the mid tier,
Speaker 1: sort of ching towards the high end as well on
Speaker 1: their chip lineup. And I think this Max Studio it's
Speaker 1: going to be low volume, but it's going to be
Speaker 1: popular amongst creative types video editing, photo editors, engineers, etcetera. Julie,
Speaker 1: Apple's coming off a records heading holiday quarter, but being
Speaker 1: thrust into several months of global economic uncertainty and it's
Speaker 1: paused services in Russia cut off product sales there. How
Speaker 1: do you think these updates will actually drive demand in
Speaker 1: the coming quarters in the context of what's happening happening
Speaker 1: on the macro economic level. Yeah, so I would echo
Speaker 1: what Mark said, when we look at you, when we
Speaker 1: look at so many one percent of consumers United States
Speaker 1: North America already own a smart pophone. So the way
Speaker 1: that you grow shared by taking it from Android, and
Speaker 1: our data shows that of iPhone smartphone owner purchasers in
Speaker 1: the past three months, six percent came from Android devices,
Speaker 1: So it looks like Apple is making progress there. Also
Speaker 1: when we look at households on a tablet today, so
Speaker 1: there's a lot of upside for Apple there. And when
Speaker 1: we look at streaming TV services, we show that consumers
Speaker 1: are watching appwards of four to five hours of streaming
Speaker 1: TV and games each day. Uh. And Apples third today, um,
Speaker 1: with you know Amazon being in first place. So there's
Speaker 1: a lot of upside for Apple as it continues to
Speaker 1: build on its product portfolio, including the services so you know,
Speaker 1: Echo marks comments today. Um. And then certainly the chip
Speaker 1: sets are impressive. That's always going to give them an advantage,
Speaker 1: not just in putting more performance, more power efficient devices
Speaker 1: into smaller and thinner packages. That's always going to be
Speaker 1: a winning formula, but as we look forward into future
Speaker 1: experiences having that kind of power on a device and
Speaker 1: being able to do things like computer vision and speech
Speaker 1: recognition and security facial recognition on device are all very
Speaker 1: powerful attributes of those devices. So, Julie, are you worried
Speaker 1: about consumer demand? Though obviously you know we're worried about
Speaker 1: you know, rising gas prices on top of inflation. Could
Speaker 1: that impact demand for these devices over the next few months.
Speaker 1: So I'm not an economist, so you know, the answer
Speaker 1: is is possibly. We haven't seen a slowdown. You know,
Speaker 1: we all thought the pandemic would impact our spending. That
Speaker 1: was two years ago. That proved to be wrong. So
Speaker 1: we'll not an economist. We don't yet see that in
Speaker 1: our numbers when we looked at consumer's plant purchases over
Speaker 1: the next three to six months. But certainly, you know,
Speaker 1: given what's going on in Ukraine day to day, it's
Speaker 1: hard to have perfect information and mark obviously focusing on
Speaker 1: the day to day. We know that Apple pause product
Speaker 1: sales in Russia. There have been calls from the Ukrainian
Speaker 1: government for Apple to cut off the app store. Are
Speaker 1: you expecting Apple to make any more aggressive moves in
Speaker 1: the region or not? I mean I saw Pepsi, Coca Cola,
Speaker 1: McDonald's and Starbucks today. Really the Lover's Apple pulled in
Speaker 1: Russia are the big ones. They could have done right.
Speaker 1: They could have paused sale, They could have removed some
Speaker 1: of the Russian newsps from external app stores outside of Russia.
Speaker 1: They stopped exports into their sales channels into the country there,
Speaker 1: and did some changes to maps and other services. But
Speaker 1: I think pulling the apps or or disabling. People have
Speaker 1: called for them to disable iPhones in Russia. You know,
Speaker 1: I personally think that would be a gigantic step that
Speaker 1: I don't think the company is ready to take now.
Speaker 1: At the same time, they do have services like Apple Music,
Speaker 1: Apple TV Plus, books and podcasts in Russia, and if
Speaker 1: they were to take those offline, that would match some
Speaker 1: of the moves you're seeing from the Netflix of the
Speaker 1: world that have pulled their service temporarily in Russia. What
Speaker 1: they did do earlier this week is they paused search ads,
Speaker 1: which is their advertising service inside of the app. Sturce
Speaker 1: or developers can no longer sell ads in their store
Speaker 1: in Russia. Will there be more to come? I think
Speaker 1: it's possible, but as of today, they haven't done anything additional.
Speaker 1: Speaking of TV plus, major League Baseball games coming to
Speaker 1: Apple tv Plus, which is super cool, except for the
Speaker 1: fact that MLB and the players are in the middle
Speaker 1: of a lockout and regular season games the first couple
Speaker 1: of weeks have been canceled. No deal in sight at
Speaker 1: this point. Is this something that you think could be
Speaker 1: material to subscriptions to Apple TV Plus or just a
Speaker 1: nice to have? I mean, I'll tell you I'm a
Speaker 1: Laker fan, and I'm sorry if that was for Julie.
Speaker 1: Go ahead, go ahead, Mark, go ahead, Mark, Julie. I'll
Speaker 1: let you get a crack at it too. Okay, I'm
Speaker 1: an NBA fan, you know, first and foremost, not an
Speaker 1: MLB fan, So if this was an NBA related deal,
Speaker 1: maybe it would get me to sign up. We also
Speaker 1: don't know when this is actually going to kick off
Speaker 1: because of the negotiations in the MLB world right now,
Speaker 1: but I do think this is just the first of many.
Speaker 1: We're probably going to see a racing deal. Given some
Speaker 1: Eddie Q their head of services as big into that,
Speaker 1: as is their head of marketing or former head of marketing,
Speaker 1: Phil Schiller. I think we'll see additional sports over time.
Speaker 1: They do have some relationships with the NBA. There's also
Speaker 1: been talking about NFL, so I think two games a
Speaker 1: week on Friday nights is not really going to move
Speaker 1: the needle for Apple TV plus. What the US move
Speaker 1: the needle for me is the fact that they are
Speaker 1: trying to get these deals done, and it's possible you'll
Speaker 1: have one service, Apple TV Plus that has several different
Speaker 1: sports leads all integrated, whereas some of the competitors either
Speaker 1: have only one, two or none at this point. Julie,
Speaker 1: I am a baseball fan, so I'll give you thirty
Speaker 1: seconds you take a swing. How important is mL Yeah, yeah,
Speaker 1: I would echo what Mark said. I think when we
Speaker 1: look at you know, why aren't people cutting the court
Speaker 1: yet from their cable operators, who satellite operators to TV?
Speaker 1: It is because of live sports. I think the question
Speaker 1: that comes into play though, is becoming very fragmented now
Speaker 1: for consumers. I can't just go one place and get
Speaker 1: all the sports that I want, you know, I'm going
Speaker 1: to a lot of different steaming services get Thursday night football,
Speaker 1: Friday night baseball, Sunday night football, whatever it may be.
Speaker 1: And so it's we'll see how it plays out long
Speaker 1: term with consumers. So definitely directly it's the right place
Speaker 1: to go, all right. Jually ask for star Mark German,
Speaker 1: who covers Apple of course from Bloomberg News thank you both.
Speaker 1: More companies joining the growing list of brands assists spending
Speaker 1: operations in Russia amid its invasion of Ukraine. The latest
Speaker 1: now PayPal, which is not the only payments company to
Speaker 1: pull out of the country. MasterCard and Visa announced over
Speaker 1: the weekend they cut off their networks as a result
Speaker 1: of the war coming up. Securing the deal, it is
Speaker 1: the second biggest acquisition ever for Google. Google buying the
Speaker 1: cybersecurity for Mandy and five point four billion dollars, aiming
Speaker 1: to take on Amazon and Microsoft in the cloud. What
Speaker 1: it means next, this is Bloomberg. Google has agreed to
Speaker 1: buy the cybersecurity for mandy And for five point for
Speaker 1: billion dollars cash. It is the company's second biggest deal ever.
Speaker 1: It will give Google more tools to protect its cloud
Speaker 1: clients by responding more quickly to online threats. Joining us
Speaker 1: now are Bloomberg Tech reporter Nico Grant. It covers alphabet
Speaker 1: for US, Nico y Google and not Microsoft, which was
Speaker 1: also in competition for this deal. And what does it
Speaker 1: mean Well, Google is a company that's trying to catch
Speaker 1: up to Microsoft and Amazon in the cloud and also
Speaker 1: when it comes to offering cybersecurity products. Microsoft kicked the
Speaker 1: tires at Mandians and was engaged in talks, and our
Speaker 1: reporting is that more than a week ago Microsoft decided
Speaker 1: to exit the process, not feeling that Mandians business, which
Speaker 1: was so dependent on uh cyber events that happened and
Speaker 1: providing consulting services, Microsoft didn't think that was the best
Speaker 1: strategic fit for its business. Google, meanwhile, has tried to
Speaker 1: take advantage of the environment we're in right now in
Speaker 1: which you have many cyber attacks that are happening. You
Speaker 1: have the war of Russia in Ukraine that is happening.
Speaker 1: That raising the specter and fears even more. And Google
Speaker 1: can say to customers, we can prevent cyber attacks from
Speaker 1: happening in the first place, and if they do, we
Speaker 1: will be best at detecting them and helping you respond
Speaker 1: to them, and then we'll use that knowledge we learn
Speaker 1: to protect all other clients. What impact will this have
Speaker 1: on the cyber defense landscape as we see the number
Speaker 1: of hack attacks tied to the Russia Ukraine evolving conflict,
Speaker 1: continue to wratch it up. Yeah, this is a major
Speaker 1: concern right now, and there have been reports from Google
Speaker 1: as well as others that they've seen many attempts to
Speaker 1: hack Ukrainians and Russians and their organizations as part of
Speaker 1: this UM. This is going to be something that Google
Speaker 1: will say be very helpful for its existing clients who
Speaker 1: may want to try out Mandiant UH and who could
Speaker 1: choose to buy access to Mandians intelligence. Ultimately, Mandant is
Speaker 1: looking at threats all across the web. It's done a
Speaker 1: lot of reporting and research on what Chinese hackers and
Speaker 1: Russian hackers are doing UM and that becomes a big
Speaker 1: part of, you know, the advisory work that they do
Speaker 1: with clients more broadly, and so Mandant will be telling
Speaker 1: customers right now, these are the types of attacks, this
Speaker 1: is how it might happen. Here's what you can learn,
Speaker 1: all right, Nicole Grant, thanks for reporting on that. We'll
Speaker 1: see if that deal in fact closes gets any regulatory
Speaker 1: scrutiny as well. Welcome back to Bluber Technology. Emily Check
Speaker 1: in San Francisco. Well on this international women say, we're
Speaker 1: taking a moment to celebrate how much women have achieved
Speaker 1: and how much work there is left to do. Recent
Speaker 1: data from pitch book shows that so far, in two
Speaker 1: startups with only female founders have snatched just two point
Speaker 1: one percent of venture capital, same as last year. Same
Speaker 1: as I want to bring in Lux Capitals, Dana Shaquier
Speaker 1: for more so, Dina. They've already started compiling the data
Speaker 1: for this year and it's no better than it was
Speaker 1: last year two, which makes no sense, of course, when
Speaker 1: women are half the population, what gives? Well? First of all,
Speaker 1: Happy International Women's Day, Emily, and thank you so much
Speaker 1: for having me and for uh and for bringing this
Speaker 1: important topic to the conversation. I am still hopeful, and
Speaker 1: as I told you last week, I would actually say
Speaker 1: I'm optimistic a f um. The data is not quite
Speaker 1: up to date in terms of where we are for two,
Speaker 1: at least from what I'm seeing, I think there is
Speaker 1: still tremendous opportunity. I have to say, and maybe I'm biased.
Speaker 1: The companies that I'm seeing are not only solo women
Speaker 1: founders who are coming from deeply technical and clinical fields,
Speaker 1: but across the board more diverse than I've ever seen
Speaker 1: in prior years. Things are changing, and I expect the
Speaker 1: data to follow suit. Okay, what about check writers like yoursel?
Speaker 1: Fourteen point three percent of check writers now are women.
Speaker 1: We know that's critical to getting more women and a
Speaker 1: greater diversity of ideas funded. But even that number, I
Speaker 1: believe it's up from like eleven percent a couple of
Speaker 1: years ago. It's moving so slowly, it really is, and
Speaker 1: it's not enough. I we have a long way to go.
Speaker 1: And there is data which Coffin Fellows has published, along
Speaker 1: with a plethora of other data, including from Bloomberg, on
Speaker 1: the importance of cap table diversity, not only in terms
Speaker 1: of founding teams, but on the performance of those teams,
Speaker 1: on the performance of those boards, on revenues, on faster
Speaker 1: time to exit. So this is not about diversity for
Speaker 1: diversity's sake, or even for the sake of a holiday
Speaker 1: like today. It's fundamentally good for business. It's good for investors,
Speaker 1: it's good for LPs, and it's good for our economy.
Speaker 1: So we we really need to move the needle here.
Speaker 1: And I'm again excited to see all of the young
Speaker 1: talent that's coming to the table, people who may not
Speaker 1: have considered a future adventure before. Uh, some of the
Speaker 1: role models that they've had the chance to to see
Speaker 1: elevated in recent years. Well, women can change the world alone.
Speaker 1: We're going to need the help of men and I'm
Speaker 1: curious in the boardroom, are you seeing male investors, male
Speaker 1: check writers more open to women founders or women ideas
Speaker 1: you know? Or is it still the women funding the
Speaker 1: smart breast pump for the women's health tech solution. Not
Speaker 1: only am I seeing investors more open to it, I'm
Speaker 1: actually seeing incredible companies that are innovating for women in
Speaker 1: women's health and in other areas that are founded by men.
Speaker 1: Uh And some of those happened to be in my portfolio,
Speaker 1: and so I do think there's been a tied ship.
Speaker 1: There have been incredibly competitive deals um that that we've
Speaker 1: had the chance to participate in, and many of the
Speaker 1: folks coming to the table are are men, and so
Speaker 1: it's really not a gendered preference here. I think it's
Speaker 1: folks are starting to see that this is fundamentally good
Speaker 1: for the world, good for our economy, and good for
Speaker 1: our investors. What kind of role do you think investors
Speaker 1: have on keeping the pressure on, especially for younger startups
Speaker 1: where you are more involved, making sure they have diverse teams,
Speaker 1: making sure they have women on the board, making sure
Speaker 1: that women are promoted so that they don't become as
Speaker 1: sort of male dominated as the big tech companies that
Speaker 1: have the power today. It's absolutely critical, Emily, and it
Speaker 1: has to start in the earliest days. This is not
Speaker 1: something where you can check the box right before you
Speaker 1: go public and decide to add, uh, you know, a
Speaker 1: quote unquote diverse member to your board, because it's it's
Speaker 1: required at that point. It really does need to be
Speaker 1: baked into the DNA of the company at the sounding stage.
Speaker 1: And again I'm seeing that happening even in new co
Speaker 1: creation in terms of the first hires, in terms of
Speaker 1: thoughtful founders who recognize the importance of that around the
Speaker 1: board room and around the cap table as well. It's
Speaker 1: very difficult to do it thoughtfully if you wait too long.
Speaker 1: Women make up thirty thirty five percent of employees at
Speaker 1: big tech companies, but it's much smaller when you look
Speaker 1: at those prime technical roles, about of those top tech
Speaker 1: engineering roles, you know it's going to take years, decades
Speaker 1: maybe for some of these bigger companies to change. It's
Speaker 1: like trying to turn the Titanic. How optimistic are you
Speaker 1: for the next generation of bigger tech companies? Are we
Speaker 1: on the right trajectory? You know? Well, speaking of data
Speaker 1: and ten years it was ten years ago when I
Speaker 1: was at Google and they first released their diversity numbers
Speaker 1: when it's specifically when it comes to women in computer
Speaker 1: science and technical roles, and they were dismal and uh.
Speaker 1: Following Google, a number of the other large fangs also
Speaker 1: released their numbers, and there were myriad efforts to address
Speaker 1: the gender gap, starting in element free school. I mean,
Speaker 1: we know now that these kind of biases and self
Speaker 1: perceptions can be formed as early as eighteen months of age.
Speaker 1: So it's not something that will move immediately and quickly.
Speaker 1: It's it's not that easy to generate, you know, multiple
Speaker 1: PhDs overnight. We have to start that early and that young.
Speaker 1: We have to see characters in TV shows that you
Speaker 1: know are excellent engineers and happen to be women, not
Speaker 1: exceptional because they are women. We need to see those
Speaker 1: types of role models on Bloomberg Tech, which you do constantly.
Speaker 1: These this type of representation is absolutely critical and I
Speaker 1: think that we'll see that precipitate over time in terms
Speaker 1: of the numbers. It won't happen quickly, but it can't
Speaker 1: happen quickly enough. We try, but all of us, even us,
Speaker 1: can certainly do better. I want to ask about some
Speaker 1: of the most rapidly growing parts of the tech economy
Speaker 1: Crypto Web three, for example, do you see um women
Speaker 1: you know, taking a fair share of the pie and
Speaker 1: some of these versioning industries, because I think the narrative
Speaker 1: is that some of these new uh new tech sub
Speaker 1: industries are still quite male dominant. Quickly in many cases
Speaker 1: they are, but there are incredible organizations coming to the table,
Speaker 1: like my BFF that are working to change that, like
Speaker 1: Women in the World, and like our new partner at
Speaker 1: Lux Grace who's focused on Web three among other things.
Speaker 1: All right, Tana Shaquire Lux Capital partner, thank you for
Speaker 1: bringing your optimism to us. I want to soak a
Speaker 1: little bit of that up and take that with me
Speaker 1: for the rest of this Internactual Women's Day coming up.
Speaker 1: As Web three is becoming a new focus for many companies.
Speaker 1: One blockchain project known as the Google of DeFi a
Speaker 1: k A. The Graph is gaining momentum. We'll have more
Speaker 1: on that next. This is Bloomberg time for our crypto report.
Speaker 1: Now Russia's invasion of Ukraine and its potential long lasting
Speaker 1: impacts that I want to bring in our next guest,
Speaker 1: he can climb the co founder and head of business
Speaker 1: at Edge and know the t behind the Graph, which
Speaker 1: brands itself as the Google of the defied world. This
Speaker 1: is an indexing and Corey protocol organizing the world's open
Speaker 1: blockchain data and making open data a public good. Taken,
Speaker 1: Thanks so much for joining us. So I'm curious how
Speaker 1: you would describe the mission of the graph and how
Speaker 1: do you make sure it doesn't become a centralized space
Speaker 1: for a space that wants to be decentralized. Absolutely. Yeah,
Speaker 1: So the Graph is on a mission to make all
Speaker 1: of the world's public data verifiable UM and the Graph
Speaker 1: is organizing all of on chain Web three data. So
Speaker 1: kind of like what Google does for the traditional web,
Speaker 1: the Graph does for the Web three space. And it
Speaker 1: is a public good and it has been built in
Speaker 1: its decentralized ways. There are many notes around the world
Speaker 1: that operate within the Graph ecosystem and many different contributors,
Speaker 1: so there's no central point of authority within the Graph network. More,
Speaker 1: what is the data then telling you? Taken about sorry shnally,
Speaker 1: what is the data telling you about the what's going
Speaker 1: on in the macro an environment right now? Obviously we're
Speaker 1: really concerned about what this means for traditional assets. Bitcoin
Speaker 1: is sort of a non traditional assets. Some thought it
Speaker 1: would be a safe haven, but Ashinali was talking about earlier,
Speaker 1: it's been very volatile like everything else. Yeah, so macro
Speaker 1: has definitely been impacting short term trading um. It's definitely
Speaker 1: been impacting the crypto markets. But in my opinion, that's
Speaker 1: quite short sighted, and I think based on some of
Speaker 1: the unfortunate current events that we're seeing in the world.
Speaker 1: You know, it's very clear why crypto is very important.
Speaker 1: Situations in Ukraine, Russia, Canada, people really can't get acts,
Speaker 1: they can't get money into Ukraine. Money have had to
Speaker 1: flee and leave their belongings at home in Ukraine. In Russia,
Speaker 1: people can't get paid. The Central Bank of Russia might
Speaker 1: also get their assets frozen. And so crypto self sovereignty
Speaker 1: really solves for this. But the markets kind of do
Speaker 1: their thing, and we're really focused on building and so
Speaker 1: the developer activity has not stalled, it's not declined. It's
Speaker 1: actually at an all time I and it's growing faster
Speaker 1: than it ever has before. An Electric Capital, they put
Speaker 1: out a dev report that showed over eighteen thou open
Speaker 1: source STAPs joined the space and joined the Web three space.
Speaker 1: So that's up, and that's in line with what we've
Speaker 1: seen within the graph ecosystem. They're over twenty eight thousand
Speaker 1: developers building on the graph today. Well as more developers
Speaker 1: build on the graph and as more people, ordinary people
Speaker 1: who have never transacted in bitcoin before or crypto for
Speaker 1: that matter, start to use the cryptocurrencies, do you think
Speaker 1: that centralization serves more of a purpose and verification is
Speaker 1: more important. I think decentralization is crucial, So you need
Speaker 1: to decentralize not just ownership, but power, decision making, control,
Speaker 1: all of that should be decentralized. It shouldn't be at
Speaker 1: you know, a platforms um authority, it shouldn't be at
Speaker 1: a platforms and the platform shouldn't be dictating who is
Speaker 1: on the platform, who is allowed to speak on the platform,
Speaker 1: the truth on that platform. I think that centralization is
Speaker 1: very crucial, but transparency, open source, permission list, trust less
Speaker 1: tech is also Those are also core values within Web three.
Speaker 1: But it feels like this is really getting tested, this
Speaker 1: entire notion when you have people being kicked off right,
Speaker 1: you have people like coin ba or exchanges like coin
Speaker 1: based essentially serving as a central mechanism to really police
Speaker 1: behaviors here. How does that test what decentralization means in
Speaker 1: this industry? So I think it's very clear that exchanges
Speaker 1: like coin base and also platforms like open sea are
Speaker 1: that just that their platforms, they're centralized, and that's why
Speaker 1: it's very important to self custody your assets so that
Speaker 1: you have control in the kind of this decentralized way,
Speaker 1: and that way no one can take that away from you.
Speaker 1: I think this, the situation that's happening now is triggering
Speaker 1: a lot of memories for a lot of people that
Speaker 1: have had to flee their countries and they were left
Speaker 1: with nothing. And you know, with crypto, you can take
Speaker 1: it with you so long as you are self custodying
Speaker 1: and you're not leaving that on a centralized exchange. We're
Speaker 1: getting also to a White House executive order on crypto,
Speaker 1: and there's continued to be a lot of uncertainty around
Speaker 1: crypto regulation. What are you bracing for here and what
Speaker 1: would you like to see? Yeah, great question. So this
Speaker 1: executive order is not a huge deal. It's something that
Speaker 1: we've been anticipating for quite some time, and so what
Speaker 1: it is it's expected to kind of instruct agencies to
Speaker 1: study and come up with a plan UM, and so
Speaker 1: that study will likely pick up on a lot of
Speaker 1: the regulatory themes that the industry has been focused on
Speaker 1: for many months, many years, so like consumer protection, regulating
Speaker 1: securities and UM security exchanges, and then also compliance with
Speaker 1: anti money laundering. So I do think that it's good
Speaker 1: that the administration is starting to study these issues, or
Speaker 1: they're studying these issues further rather than just kind of
Speaker 1: attempting to blank it regulate UM, because I think that
Speaker 1: that can stifle innovation and kind of push it overseas.
Speaker 1: And so I'm excited to see more like the knowledgeable
Speaker 1: founders within the web three space and the crypto space
Speaker 1: helped to regulate or help to UM helped to educate
Speaker 1: regulators UM. So yeah, I'm looking speaking of what regulators
Speaker 1: do in the US versus abroad. I mean, when you
Speaker 1: look at kind of the ecosystem that exists, do you
Speaker 1: think that there is more innovation moving abroad, given you
Speaker 1: know f t X and the Bahamas and you know
Speaker 1: so many companies forming in India and other places around
Speaker 1: the world. Yeah, I mean I would like to see
Speaker 1: that regulation stay here in the US. And not move overseas,
Speaker 1: and so I am looking forward to kind of looking
Speaker 1: working with regulators so that we can keep that innovation
Speaker 1: here in a safe way. All right, tnclient engine note
Speaker 1: co founder, thank you for joining us the Google of
Speaker 1: defied check it out. Bumble just released fourth quarter results,
Speaker 1: beating estimates the dating app joining the growing list of
Speaker 1: companies cutting ties with Russia. I want to get the
Speaker 1: latest with evercre I s I N Sweats Cajoria just
Speaker 1: got off the earnings called swats. This is significant for
Speaker 1: Bumble because of their huge subsidiary. But do which is
Speaker 1: big datings I focused on Europe with some users as
Speaker 1: I understand in Russia. How big a deal is this?
Speaker 1: It is so so they actually did this close during
Speaker 1: the call that Russia accounted for about two point eight
Speaker 1: percent of their business last year and they are guiding
Speaker 1: the full year revenue growth excluding Russia for full year
Speaker 1: twenty two and that implies about two percent of their business.
Speaker 1: So not a huge piece of the parent company, but
Speaker 1: meaningful exposure for bad which is part of Bumble's business.
Speaker 1: So how much of an impact do you think this
Speaker 1: could have on the business, which, to be fair, has
Speaker 1: been struggling when you look at some of the activity. Okay,
Speaker 1: let me point you to the few things. Core business
Speaker 1: for Bumble actually seems to be running very smoothly. So
Speaker 1: let me give you three data points. One is their
Speaker 1: full Yer twenty two guide if you exclude the impact
Speaker 1: from Russia, is very very strong for Bumble app, which
Speaker 1: has very small exposure to Russia itself, So not but
Speaker 1: do but the Bumble app the core app expects their
Speaker 1: growth rate to be about thirty four thirty six percent
Speaker 1: year over year, meaningfully about whether Street was. That implies
Speaker 1: that their fair growth or the net editions in their
Speaker 1: bears will be greater in two than Street was not expecting.
Speaker 1: That third is that if you exclude the impact from Russia,
Speaker 1: they expect hundred basis points of IBADA margin expansion, so
Speaker 1: the revenue growth would be about IBADA margins to expand
Speaker 1: hundred hundred pips year over year, and bears are growing
Speaker 1: at a very healthy club. So the core business excluding
Speaker 1: Russia for Bumble seems to be firing on all cylinders. Now,
Speaker 1: if you include Russia, then yes, they guided down for
Speaker 1: the full year because they're closing in their operations. They
Speaker 1: have about a hundred twenty people. They're closing their operations
Speaker 1: in Russia completely UM, so they will face some headwinds there,
Speaker 1: but the core business seems to be running fairly smoothly.
Speaker 1: And what's your take on how the macro economic uncertainty
Speaker 1: could impact consumer behavior whether or not people want to
Speaker 1: day and buy those Bumble subscriptions. So there are two things.
Speaker 1: The demographic and geographic exposure that Bado has is meaningfully
Speaker 1: different from that of Bumble, So the Bumble app users
Speaker 1: are different there in English speaking countries and in mostly
Speaker 1: the developed world, and they're seeing less of an omicron
Speaker 1: headwind or an impact because of the development of video
Speaker 1: and audio, etcetera. And in fact, their full year twenty
Speaker 1: two guide does not have any meaningful tail wind of
Speaker 1: reopening economies. That's it's a different story for Buddoo altogether.
Speaker 1: But do is it more in the emerging market countries
Speaker 1: including Russia? Um, And they're seeing a little bit more
Speaker 1: of an impact from COVID now. They do expect as
Speaker 1: economies open up, they should benefit from reopening economy, but
Speaker 1: that is not big in their guidance. A little bit
Speaker 1: of an omicron headwind for bad but less so for
Speaker 1: Bumble is this kind of a bummer for Bumble given
Speaker 1: that you know we're on the tail and hopefully of
Speaker 1: this pandemic which you know, I imagine would have been
Speaker 1: a big tail wind for for Bumble and and in
Speaker 1: person dating it should continue to be a tail wind.
Speaker 1: I mean, if we actually look at what Matched, their
Speaker 1: biggest competitor is saying about Omicron as well as COVID,
Speaker 1: there is meaningful there's reason to believe that there is
Speaker 1: meaningful upset to Matches guide. If the recovery in Asia,
Speaker 1: for example Japan, which is their number two market is
Speaker 1: is better than expected. The same thing applies here for Bumble.
Speaker 1: I think if the reopening UH is better than expected,
Speaker 1: they could have a much meaning that they could have
Speaker 1: upset to their guidance, that it could be actually beneficial
Speaker 1: to Bumber. I Swazekajoria Abricre, thanks for breaking it down.
Speaker 1: Thanks for it doesn't for us, that doesn't for this
Speaker 1: edition of Bloomberg Technology, on this International Women's Day, join
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