WEBVTT - Closing Bell: Earnings Special

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the closing bell on this stock movers report

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<v Speaker 2>the company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifel.

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<v Speaker 3>I want to take a look at what's going on

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<v Speaker 3>with Autodesk. Shares of the company makes PC software multimedia tools.

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<v Speaker 3>Fourth quarter adjusted earnings per share beat estimates. Shares up

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<v Speaker 3>three point two percent. First quarter revenue forecast did beat

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<v Speaker 3>estimates as well, as far as those numbers look. First

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<v Speaker 3>quarter adjusted earnings per share coming in two dollars and

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<v Speaker 3>eighty two cents to chills in eighty six cents, is

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<v Speaker 3>what that outlook looks like. First quarter revenue, the outlook

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<v Speaker 3>there on one point eight nine billion dollars to one

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<v Speaker 3>point nine billion dollars that beat estimates of one point

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<v Speaker 3>eight four billion dollars. Look backward. Fourth quarter net revenue

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<v Speaker 3>coming in above estimate set one point nine to six

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<v Speaker 3>billion dollars. Shares in the after hours bouncing around but

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<v Speaker 3>unchanged as of now.

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<v Speaker 4>This is a stock tim that's still down about twenty

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<v Speaker 4>one percent so far this year. So again, earning's kind

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<v Speaker 4>of giving investors something they're jew on, but still not

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<v Speaker 4>much follow through, at least as a released Autodesk which

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<v Speaker 4>is down and call it two percent right.

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<v Speaker 1>Also keep an eye on net apup. The shares up

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<v Speaker 1>about six percent in the after hours trade. Data Management

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<v Speaker 1>Software is the game. Adjusted EPs in its fiscal third

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<v Speaker 1>quarter three two dollars and twelve cents a share. The

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<v Speaker 1>street was looking for two oh six, so a beat there.

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<v Speaker 1>In line on the revenue side at around one point

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<v Speaker 1>one to seven billion. The company says that for the

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<v Speaker 1>current quarter, it's fiscal fourth quarter, it sees revenue in

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<v Speaker 1>a range of one point eight to one point nine

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<v Speaker 1>to five billion. The low end of that range is

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<v Speaker 1>right on the nose of the average of Wall Street estimates.

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<v Speaker 1>The shares right now basically unchanged on red news.

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<v Speaker 5>I want to go back to into it because now

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<v Speaker 5>we're seeing the stock actually rally more than two percent

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<v Speaker 5>here in the aftermarket. We know it's been getting hammered

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<v Speaker 5>to not in a good way, down about forty percent.

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<v Speaker 1>You're a good way to get here or explained girl.

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<v Speaker 5>All right, it's been a rough year in twenty twenty six.

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<v Speaker 5>Stocks down about forty percent so far this year, but

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<v Speaker 5>let's go back because into it, you know, get into

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<v Speaker 5>the outlook. Seeing third quarter just at EPs, it's a

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<v Speaker 5>little bit light in terms of what the street's expecting.

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<v Speaker 5>They are looking for a third quarter revenue up about

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<v Speaker 5>ten percent. You can see stock bouncing around. Now it's

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<v Speaker 5>down to get down now it's unchanged. So I think

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<v Speaker 5>investors just trying to figure out good, bad, or indifferent.

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<v Speaker 3>I'm looking at dual lingo the headline here and shares

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<v Speaker 3>her down, but all the company authorizes four hundred million

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<v Speaker 3>dollars share buyback program. Shares down right now by fourteen

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<v Speaker 3>point seven percent. The company for its outlook another reason

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<v Speaker 3>why or one reason why the stock is down. Four

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<v Speaker 3>quarter bookings three hundred and one point five million dollars,

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<v Speaker 3>the estimates for three hundred and thirty two point one

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<v Speaker 3>million dollars, so a miss there. The company sees first

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<v Speaker 3>quarter revenue coming in at two hundred and eighty eight

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<v Speaker 3>and a half million dollars. That's shy of the two

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<v Speaker 3>hundred and ninety one point eight million dollars that investors

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<v Speaker 3>wanted to see. This stock has been under pressure a

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<v Speaker 3>CFO change just a few months ago. Shares down by

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<v Speaker 3>about eighteen percent as we speak once again, twenty twenty

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<v Speaker 3>six bookings one point twenty seven billion to one point

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<v Speaker 3>three billion, the estimos for one point four billion dollars.

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<v Speaker 3>We got the CEO coming on the program tomorrow. We're

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<v Speaker 3>going to ask him about all this and more. Luis

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<v Speaker 3>van On.

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<v Speaker 1>What language is going to be in.

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<v Speaker 3>He speaks a lot of languages, but we're going to

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<v Speaker 3>do it in English because that's our limitation here.

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<v Speaker 5>It's going to be accountant language, financial language.

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<v Speaker 4>Well, go on from languages to online marketplaces. I don't

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<v Speaker 4>really know an easy way to pivot there, but real

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<v Speaker 4>real right now up five point seven percent. This came

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<v Speaker 4>after forecasts for revenue beat. Expectation sees one Q revenue

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<v Speaker 4>one hundred and eighty five to one hundred and eighty

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<v Speaker 4>nine million dollars, the low end of that easily passing

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<v Speaker 4>estimates for one hundred and eighty two point two million.

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<v Speaker 4>Looking at first quarter EBITDAH adjusted EBITDAF forecasts eleven to

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<v Speaker 4>thirteen million dollars. Estimates were for eight point seven million dollars,

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<v Speaker 4>So a beat as it relates to real real looking forward,

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<v Speaker 4>But again, another company that's been under pressure down also

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<v Speaker 4>more than twenty percent so far this year.

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<v Speaker 1>Computer and server maker Dell now crossing the wire with

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<v Speaker 1>its quarterly report. The share is popping initially on the

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<v Speaker 1>back of it. The main headline, the redhead on the

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<v Speaker 1>terminal iss your fiscal twenty twenty seven forecast revenue in

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<v Speaker 1>a range of one hundred and thirty eight to one

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<v Speaker 1>hundred and forty two billion. The low end of that

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<v Speaker 1>range is more than ten billion dollars above the average

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<v Speaker 1>street estimates. The street was looking for one twenty six

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<v Speaker 1>and change. So a very bullish guidance here on the

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<v Speaker 1>revenue side. When we look go back just a little

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<v Speaker 1>bit and take a look at the adjusted EPs in

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<v Speaker 1>the quarter that just passed, the company also beat there

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<v Speaker 1>three dollars and eighty nine cents a share. The street

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<v Speaker 1>on average is looking for three point fifty two. It

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<v Speaker 1>looks like revenue also beat in the most recent quarter.

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<v Speaker 1>The company also guys says it's going to raise its

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<v Speaker 1>annual dividend by twenty percent, boost its buyback program buy

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<v Speaker 1>ten billion dollars. A lot to unpack here in this release.

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<v Speaker 5>Yeah, some more in terms of the commentary and context

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<v Speaker 5>from the company. Recorded AI orders of thirty five four

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<v Speaker 5>point one billion in the fourth quarter, sixty four point

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<v Speaker 5>one billion for the full year fiscal twenty twenty six,

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<v Speaker 5>in particular, surpassing four thousand AI customers in fiscal year

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<v Speaker 5>twenty six, with growth across Neil Clouds, sovereign and enterprise customers.

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<v Speaker 5>And again, as you said, raising that annual dividend and

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<v Speaker 5>that board approving that ten billion dollar increase in the

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<v Speaker 5>share buy back, and the fiscal year twenty twenty seven

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<v Speaker 5>COMPANIESE suggested EPs of twelve dollars ninety cents a share

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<v Speaker 5>at the midpoint. That's of twenty five percent tim here

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<v Speaker 5>over year.

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<v Speaker 3>Just looking through the commentary in the release to get

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<v Speaker 3>some more context, the company's vice chair and COO, Jeff Clark, says,

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<v Speaker 3>the AI opportunity is transforming our company. We close more

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<v Speaker 3>than sixty four billion in AI optimized server orders shit

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<v Speaker 3>more than twenty five billion dollars throughout the year, and

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<v Speaker 3>are entering fiscal year twenty seven with record backlog of

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<v Speaker 3>forty three billion dollars. Powerful proof that our engineering leadership

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<v Speaker 3>and differentiated AI solutions are winning. Shares up by about

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<v Speaker 3>six percent right now.

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<v Speaker 1>Yeah, and you talk about that revenue growth figure. Remember,

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<v Speaker 1>just a few years ago, this was a company that

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<v Speaker 1>was in contraction and certainly got a big boost from AI.

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<v Speaker 1>I do want to turn real quickly to block tick xyz.

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<v Speaker 1>A lot of drama surrounding that company. The company says

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<v Speaker 1>it's going to cut forty percent of its workforce and

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<v Speaker 1>says that for the first quarter that we're in right now,

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<v Speaker 1>it sees adjusted operating income in a range or excuse me,

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<v Speaker 1>a six hundred million dollars, which is actually above what

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<v Speaker 1>the street was looking for. The company did actually report

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<v Speaker 1>earnings for the quarters that just passed, the fourth quarter,

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<v Speaker 1>saying that profit gross profit did come in and above

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<v Speaker 1>estimates at one point eight three billion, and its segment

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<v Speaker 1>revenue relatively in line with estimates at about two point

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<v Speaker 1>one point nine billion. But the key headline there is

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<v Speaker 1>a forty percent cut of it's.

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<v Speaker 3>Hold on romaine. When have you ever seen an announcement

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<v Speaker 3>forty percent cut to headcount?

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<v Speaker 1>This is I'm a little surprised by this. I'm actually

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<v Speaker 1>looking through the release right now. I don't know if

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<v Speaker 1>this is has something to do with some of the

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<v Speaker 1>drama that we've been reporting on about the future of

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<v Speaker 1>this company, whether this is about productivity and AI. Jack

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<v Speaker 1>Dorshy of course has not been very vocal about exactly

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<v Speaker 1>what's been going on there, but we talk about a

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<v Speaker 1>company that we know has been trying to go through

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<v Speaker 1>some sort of restructuring. We have to find out the

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<v Speaker 1>exact reasons why. But I mean, you look at the

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<v Speaker 1>investor reaction there. Tim, I don't know if you have

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<v Speaker 1>a TV screen in front of you, but a fifteen

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<v Speaker 1>percent pop in the shares on that.

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<v Speaker 3>Well, when you're paying you know, you know, when your

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<v Speaker 3>workforce is declined by more than forty percent, your salaries

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<v Speaker 3>are going to be going down. So I think that

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<v Speaker 3>that's probably one of the reasons why we're seeing that

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<v Speaker 3>reaction right now. But yeah, we're gonna have to dig

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<v Speaker 3>into this more because that's a that is a big

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<v Speaker 3>headcut YEP at headcount Cut announcement.

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