WEBVTT - Interest Rates, Data Protection, And  NBC

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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<v Speaker 1>my co host Matt Miller. Every business day we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets Podcast

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<v Speaker 1>on Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast. Right now, I want

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<v Speaker 1>to get a sense. Let's talk about one of the

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<v Speaker 1>fastest growing areas UH in the financial markets MAT, which

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<v Speaker 1>is E t F's That's where the kids are playing today.

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<v Speaker 1>Sylvia Jablonski, chief investment officer co founder at Defiance E

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<v Speaker 1>t F s H. Sylvia, thanks so much for joining

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<v Speaker 1>us here. I would love to just get your thoughts

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<v Speaker 1>here um on these markets. In two you know, Matt Night,

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<v Speaker 1>we talked a lot about rising interest rates. We're not

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<v Speaker 1>sure how much and how fast. We've got a slowing economy.

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<v Speaker 1>We're not sure how much and how fast. But given

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<v Speaker 1>that backdrop, how are you thinking about these markets? Hi,

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<v Speaker 1>good morning and great to be here with you today. Well,

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<v Speaker 1>you know, I think that these markets were a little

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<v Speaker 1>bit of a wake up call from the way that

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<v Speaker 1>we had did one in terms of UM, you know,

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<v Speaker 1>some of the fear and panic and volatility that we've seen,

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<v Speaker 1>you know, following a dramatic fiscal and monetary policy UM.

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<v Speaker 1>You know, year of year of support in twenty one.

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<v Speaker 1>The markets now in two are are sort of in

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<v Speaker 1>a transition as some of those policies and and economies

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<v Speaker 1>moved towards a more normalized state. And you know what

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<v Speaker 1>we're trying to figure out is, you know, how does

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<v Speaker 1>that look? And I think that by itself would sort

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<v Speaker 1>of be okay, and maybe we would see you know,

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<v Speaker 1>sort of less a little bit less liquidly, a little

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<v Speaker 1>bit less free money things like that, maybe a little

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<v Speaker 1>pullback on high returns. But what I think to add

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<v Speaker 1>some some volatility and uncertainty is essentially, you know, the

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<v Speaker 1>supply chain disruptions UM, the upsurgeon demand for for goods

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<v Speaker 1>that's keeping implacent high and some of these other risks

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<v Speaker 1>to the market. It's and it's not just high, right,

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<v Speaker 1>I mean, the seven and a half percent print is

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<v Speaker 1>getting people to flip out UM. Jim Bullard said yesterday,

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<v Speaker 1>in another time, they would have caused called an emergency

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<v Speaker 1>meeting and really done something about it. And there are

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<v Speaker 1>a lot of critics out there who say, why in

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<v Speaker 1>the heck aren't they doing that? Um, it's the highest inflations,

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<v Speaker 1>Ben since I was eight, So you know, I think

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<v Speaker 1>I was seven. One is the last I graduated high school.

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<v Speaker 1>That was a fantastic year. That's awesome for you. I

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<v Speaker 1>was also awesome being eight, But it wasn't awesome living

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<v Speaker 1>with this much inflation for my parents, and it certainly

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<v Speaker 1>isn't for me now or a lot of especially lower

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<v Speaker 1>income people in this country. Um, what kind of rate

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<v Speaker 1>hike schedule do you see as a result? I mean,

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<v Speaker 1>are we going to see fifty basis points in March

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<v Speaker 1>or at least one of the next few meetings because

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<v Speaker 1>Bullard wants to see four rate hikes in the next

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<v Speaker 1>three meetings. You know, it's it's so hard to call,

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<v Speaker 1>right because you see what Bullard am out with, and

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<v Speaker 1>then you know sort of the response to that that

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<v Speaker 1>that the feed is going to wait and see and

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<v Speaker 1>and and you know, be reactive and reactive to what's

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<v Speaker 1>going on in the actual economy, and month by month,

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<v Speaker 1>you know, sort of take a look and and go

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<v Speaker 1>step by steps. So it feels like you know that

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<v Speaker 1>the feed wants to come in for a soft landing,

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<v Speaker 1>and you can see the reaction of the markets UM

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<v Speaker 1>to some of his comments about you know, perhaps doing

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<v Speaker 1>more and more quickly at higher rates and things like that.

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<v Speaker 1>So I just, you know, my my sense of this

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<v Speaker 1>is that it's going to be a slow and steady

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<v Speaker 1>right hike process. And I think part of that is because, yes,

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<v Speaker 1>inflation is at all time highs, but we still don't

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<v Speaker 1>know how much of this, you know, supply chain disruption

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<v Speaker 1>clearing out, you know, wages sort of easing out, UM

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<v Speaker 1>of a full sort of reopen getting back into the

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<v Speaker 1>market is going to pull that down where you know,

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<v Speaker 1>we might be at all time highs there and we

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<v Speaker 1>sort of keep saying that I thought that last month,

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<v Speaker 1>and you know here we are a little bit higher.

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<v Speaker 1>But I do think that we're peeking out here. UM.

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<v Speaker 1>So you know, I would expect it to be hopefully,

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<v Speaker 1>but you know, so so my you know, my guests

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<v Speaker 1>will be four to five on this UM and I

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<v Speaker 1>don't you know, see two fifty to see UM moves

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<v Speaker 1>in a row. But we'll well, we'll sort of see

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<v Speaker 1>how that turns out. Thirty seconds, Sylvia, what are the

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<v Speaker 1>sectors that you like the most right here, giving that backdrop, Yeah,

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<v Speaker 1>I really like well two things. One would be the

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<v Speaker 1>reopen trade right. Um, we're we're kind of exaccinated. The

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<v Speaker 1>numbers are getting better, so cruizes, hotels, airlines, and number two,

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<v Speaker 1>disruptive technology. You've got to be invested in five G

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<v Speaker 1>you've got to be invested in web three point oh um.

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<v Speaker 1>It's certainly the future, and I don't think that these

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<v Speaker 1>items issues right now are a huge factor on the

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<v Speaker 1>future growth stories there. All right, Sylvia, thank you so

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<v Speaker 1>much for joining us. Sylvia Jablonski, chief investment Officer, co

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<v Speaker 1>founder Defiance et f H. I want to talk about NBC.

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<v Speaker 1>Boy are they busy. They got a super Bowl, Matt,

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<v Speaker 1>they got the Olympics, they got Mike Treko back and

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<v Speaker 1>forth between the Olympics and the super Bowl. You know

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<v Speaker 1>who follows all that media stuff? You or Bloomberg News?

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<v Speaker 1>Yeah I did, I did it back in the day.

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<v Speaker 1>But Jerry Smith follows it for Bloomberg News. And we've

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<v Speaker 1>got Jerry Smith here right now. Jerry, is it a

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<v Speaker 1>good time to be NBC right now? It's definitely a

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<v Speaker 1>busy time to be working at NBC. Um. Yeah, they

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<v Speaker 1>have the Super Bowl on Sunday night, and their Olympics coverage,

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<v Speaker 1>uh started late last week. So they've got a lot

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<v Speaker 1>of employees in Beijing, a lot of employees in Los Angeles,

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<v Speaker 1>which is already complicated, and then you're talking about doing

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<v Speaker 1>all this in the middle of a pandemic. So it's um,

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<v Speaker 1>it's a busy time to be at NBC right now. Well.

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<v Speaker 1>And are other people besides Paul watching the Olympics? I

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<v Speaker 1>mean I barely know they're going on, although I have

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<v Speaker 1>to say that I also go to bed at six

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<v Speaker 1>pm every night. Um is it as popular as? Um?

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<v Speaker 1>NBC what have hoped when they were bidding for it.

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<v Speaker 1>It's certainly not what they hoped. The ratings so far

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<v Speaker 1>for the Olympics are down almost from the Winter Games

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<v Speaker 1>four years ago. UM. Well, not a lot of reasons

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<v Speaker 1>for that. I mean, just in the last four years,

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<v Speaker 1>a lot of people have cut the cord and are

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<v Speaker 1>watching a lot less TV than they used to. Um.

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<v Speaker 1>There's also just a lot of challenges NBC face with

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<v Speaker 1>these games. The the controversy over China and their human

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<v Speaker 1>rights record, A thirteen hour time difference between the East

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<v Speaker 1>Coast and Beijing, so a lot of these events are

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<v Speaker 1>happening while people are asleep. Um, you know, there's a

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<v Speaker 1>potential fatigue factor. We just had a Summer Games. They're

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<v Speaker 1>normally spaced out two years between summer winter. This time,

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<v Speaker 1>there's just six months between the Summer Olympics and the

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<v Speaker 1>Winter Olympics. So you know, there's a lot of different

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<v Speaker 1>reasons why the ratings might be down. Jerry Is the

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<v Speaker 1>NBC even making the argument that, oh, they're not capturing

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<v Speaker 1>all our digital viewership. Is that are you trying to

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<v Speaker 1>be made? Yeah? I mean NBC is is actually trying

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<v Speaker 1>to Uh. They've been on this campaign for a while

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<v Speaker 1>now where they're trying to replace uh Nielsen, which is

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<v Speaker 1>the industry standard for ad deals. They feel like Nielsen

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<v Speaker 1>isn't capturing all the viewers on outside of the TV landscape.

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<v Speaker 1>They've been promoting data from a company called i Spot TV,

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<v Speaker 1>which does its own sort of measurement. Um. I mean

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<v Speaker 1>that's been the challenge for NBC is just trying to

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<v Speaker 1>get the Olympics in front of people who are not

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<v Speaker 1>watching TV anymore. So they've struck deals with TikTok um,

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<v Speaker 1>you know, Snapchat, Twitter, They have pe streaming service where

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<v Speaker 1>for four nine a month, you can watch every Olympics

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<v Speaker 1>event for the first time. So, Jerry, there's concept in

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<v Speaker 1>the TV world of make goods, which is, boy, if

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<v Speaker 1>your audience comes in way below what you told me

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<v Speaker 1>it was going to be, you gotta give me some

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<v Speaker 1>more ads. Is that something that NBC is talking about

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<v Speaker 1>here for the Olympics, right? I mean the I've been

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<v Speaker 1>talking to NBC executives, an average rising executives, and no

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<v Speaker 1>one is surprised that the ratings are down. In fact,

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<v Speaker 1>NBC lowered um it's expectations with advertisers, um you know,

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<v Speaker 1>by about before the games began. So ultimately, you know,

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<v Speaker 1>and when you lower your your expectations for your audience,

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<v Speaker 1>you also lowered pride. So NBC was charging a lot

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<v Speaker 1>less for these ads, and they did four years ago.

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<v Speaker 1>And the hope is is that they can make up

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<v Speaker 1>for those lower prices with a lot more ad inventory.

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<v Speaker 1>I mean, if you think about all the different platforms

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<v Speaker 1>that the Olympics are on, now, that's a lot more

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<v Speaker 1>ad inventory that NBC can sell. All right, interesting, We'll

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<v Speaker 1>continue to pay attention to that. Plus we got a

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<v Speaker 1>Super Bowl, maybe they can make it up there. This Sunday,

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<v Speaker 1>because this is likely to be maybe the highest rated

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<v Speaker 1>super Bowl in a long everyone's gonna bet, I know,

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<v Speaker 1>everybody's bet. Everybody's got some schedrol on this thing. So

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<v Speaker 1>we'll see. All right, Let's check in with our next guest,

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<v Speaker 1>Dave Ellison, portfolio manager at the Hennessy Large in small

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<v Speaker 1>cat financial funds. Dave, how are financials going to perform?

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<v Speaker 1>And what is a rising interest rate environment? How do

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<v Speaker 1>you think about that? You know, I, you know, I

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<v Speaker 1>think generally the market has been you know, in lockstep,

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<v Speaker 1>meaning that rates go up, financials go up, and vice versa.

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<v Speaker 1>And that's been kind of a a theme that's been

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<v Speaker 1>playing out for you know, a year or so now,

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<v Speaker 1>and I'm not sure if that continues, depending what happens

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<v Speaker 1>to the yield curve. But I think generally the banks

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<v Speaker 1>in particular are you know, they've got good earnings visibility,

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<v Speaker 1>the valuations aren't crazy relative to history, and I think

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<v Speaker 1>they're becoming kind of a safe haven in a market

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<v Speaker 1>where you know, it seems like daily there's blow ups,

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<v Speaker 1>you know, not necessarily all in financial stocks, but across

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<v Speaker 1>the board. So I generally think we are in a

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<v Speaker 1>significant correction in the market, a significant downturn in the market.

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<v Speaker 1>It's not showing up in the indexes, but boy, there

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<v Speaker 1>are stocks that have just gotten absolutely hammered. I look

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<v Speaker 1>at Bank America's up ten percent this year, and I

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<v Speaker 1>look at, for example, of Firm Holdings, which is a

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<v Speaker 1>by Now paid later, a finance company that's down about

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<v Speaker 1>almost fifty this year. So there are significant things happening

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<v Speaker 1>in the market, and I think the problem is valuation,

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<v Speaker 1>and the problem is delivering on their you know, on

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<v Speaker 1>what they told people they were going to do, meaning

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<v Speaker 1>the business models aren't working and the stocks are just

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<v Speaker 1>getting absolutely hammered. But you're not saying, oh, now a

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<v Speaker 1>firm has a better evaluation, I want to go in

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<v Speaker 1>and buy that by now pay lead business. Well in

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<v Speaker 1>that in that specific case, I'm just picking out the

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<v Speaker 1>fact that there's significant negative performance happening in the market

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<v Speaker 1>despite the index. Is what is the sm T flat

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<v Speaker 1>this year? This week? I I think so, I think

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<v Speaker 1>my math is kind of correct, maybe not, And yet

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<v Speaker 1>you've had these massive draw downs in these companies. You know,

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<v Speaker 1>you just mentioned Goodyear Tire leading up into this into

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<v Speaker 1>my segment here that's down. I mean, in my days

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<v Speaker 1>of fidelity, you had a stock down, it wrecked your

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<v Speaker 1>performance if it was a big position in the fun

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<v Speaker 1>and it would destroy your performance for the year. So

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<v Speaker 1>so you were having in massive, you know, performance destructive

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<v Speaker 1>stocks in these portfolios that are not showing up in

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<v Speaker 1>the indexes. So that this is a we are in

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<v Speaker 1>a significant correction in the market. Well, you mentioned that,

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<v Speaker 1>you mentioned the yield curve. I mean yesterday we saw

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<v Speaker 1>the two year yield rise twenty five basis points in

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<v Speaker 1>one session. I mean that right. Well, I think that

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<v Speaker 1>the problem is, you know, the Fed governors talk too much,

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<v Speaker 1>and they need to shut up and not talk as much.

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<v Speaker 1>It creates these problems in the market. The market is

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<v Speaker 1>going to go there anyway. It was going to go

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<v Speaker 1>there anyway, meaning that I don't know it was going

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<v Speaker 1>to go or that day. But if we do have

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<v Speaker 1>a persistent inflation problem, we need to get rates more normalized.

0:12:05.960 --> 0:12:09.880
<v Speaker 1>I don't think raising rates is gonna impact inflation that much,

0:12:10.679 --> 0:12:12.720
<v Speaker 1>at least in the near term, because there are other

0:12:12.800 --> 0:12:17.600
<v Speaker 1>issues impacting it. And the question, whether you know, discussion

0:12:17.640 --> 0:12:20.040
<v Speaker 1>on inflation is a big one. The question is my

0:12:20.120 --> 0:12:24.079
<v Speaker 1>view is that companies seem to be raising prices because

0:12:24.120 --> 0:12:27.880
<v Speaker 1>they can politically get away with it and socially get

0:12:27.880 --> 0:12:30.559
<v Speaker 1>away with it. And they're going to do that as

0:12:30.559 --> 0:12:34.000
<v Speaker 1>long as they can. And you have examples like Tyson

0:12:34.080 --> 0:12:37.520
<v Speaker 1>Foods this week where you know, they raise prices across

0:12:37.559 --> 0:12:41.079
<v Speaker 1>the board and the stock is up. So every CEO

0:12:41.280 --> 0:12:44.200
<v Speaker 1>sees that and says, okay, I can raise prices, it

0:12:44.240 --> 0:12:47.320
<v Speaker 1>will help my stock price. I mean twenty years ago

0:12:47.400 --> 0:12:50.680
<v Speaker 1>it was basically move all your production to China and

0:12:50.720 --> 0:12:54.160
<v Speaker 1>the stock went up. So everybody went to China, got

0:12:54.200 --> 0:12:56.920
<v Speaker 1>the cheap labor, expanded their margins, and their stock went

0:12:57.040 --> 0:12:59.560
<v Speaker 1>went up. And now if we're in a trap now,

0:12:59.640 --> 0:13:02.320
<v Speaker 1>where are going to raise prices to hang onto margins,

0:13:02.960 --> 0:13:06.520
<v Speaker 1>You're gonna have persistent inflation despite what the FED does

0:13:06.520 --> 0:13:09.360
<v Speaker 1>on rates. Hey, Dave, thanks so much for joining us.

0:13:09.679 --> 0:13:14.400
<v Speaker 1>Appreciate getting your thoughts as always. Dave Ellison, portfolio manager,

0:13:14.400 --> 0:13:18.560
<v Speaker 1>Hennessey Large and small cap financial funds. They're joining us

0:13:22.120 --> 0:13:25.640
<v Speaker 1>all right. During this pandemic, more and more people working

0:13:25.679 --> 0:13:29.640
<v Speaker 1>from home, more and more people learning from home. That

0:13:29.679 --> 0:13:32.320
<v Speaker 1>means more and more data goes up into the cloud.

0:13:32.320 --> 0:13:36.000
<v Speaker 1>That parent raises data security issues. Um, let's get to

0:13:36.000 --> 0:13:38.480
<v Speaker 1>the bottom of that. Get some more details. Sanse Merchant Donnie.

0:13:38.520 --> 0:13:41.600
<v Speaker 1>He's the CEO of Common Vault. Common Vault is a

0:13:41.679 --> 0:13:46.119
<v Speaker 1>public and traded stock UM under on the NASTACS. Cv

0:13:46.559 --> 0:13:49.559
<v Speaker 1>lt is the symbol for you, Sance, I think so

0:13:49.640 --> 0:13:53.920
<v Speaker 1>much for joining us here. Are we seeing more security issues?

0:13:54.040 --> 0:13:57.760
<v Speaker 1>Data issues again as more and more people do they're

0:13:58.080 --> 0:14:04.439
<v Speaker 1>computing from remote areas now during this pandemic. Sure, hey

0:14:04.480 --> 0:14:09.280
<v Speaker 1>you good to be there. The company's compolled cb lt UM.

0:14:09.920 --> 0:14:13.959
<v Speaker 1>You know, is your question is is data more at risk? Well,

0:14:14.120 --> 0:14:17.560
<v Speaker 1>data has never been more valuable, and I would say

0:14:17.880 --> 0:14:21.680
<v Speaker 1>when more vulnerable because to your point, it's being created,

0:14:21.800 --> 0:14:24.440
<v Speaker 1>you know, from remote work. Data is being used in

0:14:24.520 --> 0:14:28.240
<v Speaker 1>new use cases for you know, data lakes, data warehouses, analytics,

0:14:28.760 --> 0:14:31.960
<v Speaker 1>customer service and so data is in flight. There's a

0:14:32.000 --> 0:14:34.920
<v Speaker 1>lot more data being created, and yes there's a lot

0:14:35.000 --> 0:14:37.840
<v Speaker 1>more happening around that data. You know, if you've seen

0:14:38.240 --> 0:14:42.040
<v Speaker 1>an incredible increase in cyber threat cyber attax on that

0:14:42.160 --> 0:14:46.480
<v Speaker 1>data UM over the past few years, but really around

0:14:46.480 --> 0:14:50.080
<v Speaker 1>the pandemic where companies had to pivot, you know, into

0:14:50.120 --> 0:14:52.640
<v Speaker 1>a whole new way of working and UM and we're

0:14:52.640 --> 0:14:55.720
<v Speaker 1>exposed to we help customers every day literally every day

0:14:56.000 --> 0:14:58.960
<v Speaker 1>and the customers and I wonder if it just gets

0:14:59.160 --> 0:15:02.000
<v Speaker 1>harder and harder. It's an uphill battle, by the way,

0:15:02.480 --> 0:15:07.560
<v Speaker 1>to repeat for viewers, it's Convolt not Common Vault Systems,

0:15:07.600 --> 0:15:12.600
<v Speaker 1>Paul has Paul has an issue speech issue. Yes, com

0:15:12.680 --> 0:15:16.680
<v Speaker 1>Vault systems um of course. And you know, as we

0:15:16.880 --> 0:15:22.280
<v Speaker 1>create and produce more and more data, I mean, we're

0:15:22.320 --> 0:15:26.840
<v Speaker 1>expecting exponential climbs, right, So how much more difficult does

0:15:26.840 --> 0:15:30.640
<v Speaker 1>this fight get? It gets? You know, it is it

0:15:30.800 --> 0:15:33.480
<v Speaker 1>is why convolts And you know during the data we

0:15:33.760 --> 0:15:38.080
<v Speaker 1>think we're in the data protection, data management, uh sort

0:15:38.080 --> 0:15:41.080
<v Speaker 1>of space. We've seen a real tail willing enough business

0:15:41.080 --> 0:15:43.680
<v Speaker 1>over the past couple of years because all of a sudden,

0:15:44.560 --> 0:15:48.240
<v Speaker 1>um companies boards. It's at you know, see you on

0:15:48.280 --> 0:15:53.400
<v Speaker 1>board levels. They're making decisions around having a uniform platform

0:15:53.480 --> 0:15:55.840
<v Speaker 1>to manage all the data assets. And data assets for

0:15:55.960 --> 0:15:59.200
<v Speaker 1>most companies have come over, you know, over generations literally,

0:15:59.240 --> 0:16:02.160
<v Speaker 1>so you're running you have you have business applications of

0:16:02.240 --> 0:16:04.600
<v Speaker 1>well built decades ago. They're still running businesses and you

0:16:04.640 --> 0:16:07.120
<v Speaker 1>have to protect those as well as as well as

0:16:07.160 --> 0:16:10.320
<v Speaker 1>the new workloads in the cloud, the cloud native workloads,

0:16:10.440 --> 0:16:12.440
<v Speaker 1>and and that's where we commit. Just as an example,

0:16:12.640 --> 0:16:15.640
<v Speaker 1>in in just in the past three years, we have

0:16:15.800 --> 0:16:19.040
<v Speaker 1>moved forward two and a half exabytes of data for

0:16:19.200 --> 0:16:22.200
<v Speaker 1>customers into the public cloud. And that is that has

0:16:22.240 --> 0:16:24.760
<v Speaker 1>literally grown five times in the past three years. So

0:16:24.840 --> 0:16:27.320
<v Speaker 1>you can see the pace at which customers are embracing

0:16:27.360 --> 0:16:31.040
<v Speaker 1>public cloud services, public cloud capabilities, and that brings about

0:16:31.080 --> 0:16:34.760
<v Speaker 1>a whole new way of thinking about protecting the data. Santa,

0:16:34.840 --> 0:16:38.320
<v Speaker 1>what you know, I think about you know, data security, cybersecurity,

0:16:38.360 --> 0:16:40.760
<v Speaker 1>and you know, oftentimes we hear from you know, big large,

0:16:40.920 --> 0:16:44.720
<v Speaker 1>publicly traded corporations SMP companies. How about some of the

0:16:44.760 --> 0:16:49.160
<v Speaker 1>small to mid size companies, how are they equipped to

0:16:49.240 --> 0:16:54.160
<v Speaker 1>kind of secure their data, to secure their networks. It's

0:16:54.240 --> 0:16:56.600
<v Speaker 1>it's a it's a it's a very important question. It's

0:16:56.600 --> 0:16:59.880
<v Speaker 1>a reality because today no one's in you. No company,

0:17:00.120 --> 0:17:03.640
<v Speaker 1>regardless of side, is immune to decide with threats. It

0:17:03.680 --> 0:17:06.720
<v Speaker 1>doesn't matter what side you are, um what they wanted

0:17:06.760 --> 0:17:08.040
<v Speaker 1>to data, what they want us to be able to

0:17:08.080 --> 0:17:11.520
<v Speaker 1>hold you for ransom? And and what's happening is we,

0:17:11.800 --> 0:17:14.160
<v Speaker 1>you know, the expectations become that you know, a small

0:17:14.200 --> 0:17:17.119
<v Speaker 1>accounting firm with let's say fifty people have to have

0:17:17.160 --> 0:17:21.200
<v Speaker 1>the same defenses as a pentagon to protect their customer information,

0:17:21.240 --> 0:17:24.399
<v Speaker 1>the client information. It's hard, it's super hard. And so

0:17:24.440 --> 0:17:26.639
<v Speaker 1>what we're doing is and and then there's another you know,

0:17:26.960 --> 0:17:29.240
<v Speaker 1>with with ransomware, which is which is the latest sort

0:17:29.240 --> 0:17:33.040
<v Speaker 1>of threat vector. What's happening is that traditional NT organizations

0:17:33.680 --> 0:17:37.240
<v Speaker 1>um find themselves you know, the crosscreas of of of

0:17:37.480 --> 0:17:39.920
<v Speaker 1>sort of what I call, you know, I ke collision,

0:17:39.960 --> 0:17:42.000
<v Speaker 1>which is is it a security problem or is it

0:17:42.040 --> 0:17:44.720
<v Speaker 1>an infrastructure problem? Who you know, who owns the backup?

0:17:44.840 --> 0:17:46.760
<v Speaker 1>Is that the best way to go about it? And

0:17:46.760 --> 0:17:49.080
<v Speaker 1>and so this, this whole thing is causing companies small

0:17:49.119 --> 0:17:52.720
<v Speaker 1>and big to rethink data protection, which is why we've

0:17:53.200 --> 0:17:56.479
<v Speaker 1>you know, we've been hard at work creating super super

0:17:56.520 --> 0:17:59.600
<v Speaker 1>easy to use um stas based solutions. As an example,

0:17:59.760 --> 0:18:02.159
<v Speaker 1>we've all the metallic because of the customers getting access

0:18:02.160 --> 0:18:04.920
<v Speaker 1>to the world class capabilities to protect themselves. That's that's

0:18:04.960 --> 0:18:08.360
<v Speaker 1>that's been our you know, our direction. So what kind

0:18:08.359 --> 0:18:12.240
<v Speaker 1>of growth do you expect? You know, we we we

0:18:12.359 --> 0:18:16.000
<v Speaker 1>just announced to three results. Uh and you know we

0:18:16.000 --> 0:18:19.119
<v Speaker 1>we it was a record sitting quarter for us. We

0:18:19.400 --> 0:18:21.720
<v Speaker 1>you know, we exceeded over twelve two hundred million dollars

0:18:21.720 --> 0:18:23.800
<v Speaker 1>in quality total revenue for the first time of the company,

0:18:23.840 --> 0:18:27.840
<v Speaker 1>so it was quite a quite a threshold. UM. You know,

0:18:27.880 --> 0:18:30.400
<v Speaker 1>we we we we we continue to see growth. We've

0:18:30.440 --> 0:18:33.800
<v Speaker 1>had UM, you know, really good results over the past

0:18:33.840 --> 0:18:36.879
<v Speaker 1>couple of years, are new products which we sort of

0:18:36.920 --> 0:18:39.439
<v Speaker 1>capture under the subscription and SASS A r r OUR

0:18:39.520 --> 0:18:42.400
<v Speaker 1>SASS products and our subscription oriented products sort of group

0:18:42.400 --> 0:18:45.280
<v Speaker 1>forty year on year and more than half of our

0:18:45.920 --> 0:18:49.080
<v Speaker 1>UM total A R R M and recurring revenue. So

0:18:49.200 --> 0:18:51.359
<v Speaker 1>you know, we're we're seeing great motion and there's no

0:18:51.400 --> 0:18:54.040
<v Speaker 1>reason to believe that it would still down. Sanj. Thanks

0:18:54.080 --> 0:18:56.760
<v Speaker 1>so much for joining us. Really appreciate your time, san J.

0:18:56.960 --> 0:19:00.679
<v Speaker 1>Virgin Donnie there is the CEO of Convolt again. The

0:19:00.720 --> 0:19:05.520
<v Speaker 1>ticker on the NASDAC is see v lt UM. Go

0:19:05.560 --> 0:19:07.359
<v Speaker 1>ahead and check that out if you want to see

0:19:07.440 --> 0:19:12.840
<v Speaker 1>more about Convolt Systems UM. The stock over the past

0:19:13.040 --> 0:19:17.280
<v Speaker 1>year has UM come down a little right now six

0:19:18.160 --> 0:19:21.480
<v Speaker 1>eight UM, but it had a big jump throughout one

0:19:21.520 --> 0:19:23.439
<v Speaker 1>and like the rest of the market's been very vulnerable.

0:19:25.880 --> 0:19:29.000
<v Speaker 1>Thanks for listening to the Bloomberg Markets podcast. You can

0:19:29.040 --> 0:19:32.800
<v Speaker 1>subscribe and listen to interviews with Apple podcasts or whatever.

0:19:32.880 --> 0:19:36.560
<v Speaker 1>Podcast platform you prefer. I'm Matt Miller. I'm on Twitter

0:19:36.800 --> 0:19:40.320
<v Speaker 1>at Matt Miller three. Pt on Fall Sweeney, I'm on

0:19:40.320 --> 0:19:43.280
<v Speaker 1>Twitter at pt Sweeney. Before the podcast, you can always

0:19:43.280 --> 0:19:45.160
<v Speaker 1>catch us worldwide at Bloomberg Radio