Silvergate Meltdown | Bloomberg Technology 03/08/2023
CAROLINE: I'M CAROLINE HYDE BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: SILVER GATE PLANS TO WIND DOWN OPERATIONS AND LIQUIDATE. WHAT IT MEANS FOR THE REST OF CRYPTO. ED: GOOGLES VP FOR TRUST AND SAFETY TALKS ABOUT THE GUARDRAILS NEEDED FOR GENERATIVE AI. CAROLINE: THE RUNWAY CEO TALKS ABOUT HOW THE FASHION RENTAL IS LEANING INTO A COST-CONSCIOUS CONSUMER.
FIRST FROM THE MICRO TO THE MACRO, WE SEE A LITTLE MORE OF A MOOD SHIFT. HOWELL ONCE AGAIN, THE CHAIR OF THE FEDERAL RESERVE, UP ON CAPITOL HILL, DID NOT DO MUCH TO ALLEVIATE ANXIETY. WE DID MANAGE TO SEE THE NASDAQ TECH HEAVY BENCHMARK RECOVERING SOME OF YESTERDAY'S SELLOFF. THE SEMICONDUCTOR INDEX OUTPERFORMING UP 2.7%. WE ARE TRUE -- STILL TRYING TO FIGHT OFF A BORROWING ON THE RISE. ON THE FRONT END OF THE CURVE,
THE TWO-YEAR, WELL ABOVE 5%. INVERTED YIELD CURVE, WE ARE SEEING OTHER AREAS OF RISK ASSETS ON THE DOWNSIDE. WE ARE SEEING CRYPTO ONCE AGAIN UNDER PRESSURE. DOLLAR ON THE RISE AS INTEREST RATES HAVE COME. BUT CRYPTO UNDER PRESSURE FOR A HOST OF DIFFERENT CONTAGION ISSUES THAT ARE FACING THEM AT THE MOMENT. FROM THAT MACRO PICTURE, I KNOW YOU WILL DELVE INTO ONE PARTICULAR NAME. ED: POWELL HAS BEEN A FACTOR IN THE
EQUITY MARKETS BUT NEWS FLOW STILL DRIVES THE AGENDA. ADOBE REALLY INTERESTING. WE'VE REPORTED THAT THEY ARE COULD MAKING TUNEUP -- COMMITTING TO KNOW COMPANYWIDE LAYOFFS. SNAP IS INTERESTING. DOWN ALMOST 6%.
A LOT OF NOTES OUT FROM THE SOUTH SIDE TODAY. IF YOU LOOK AT IT, THE CHANCES OF TIKTOK BEING BANNED IN THE U.S., UNLIKELY SO THERE WON'T BE AS MUCH FEEL-GOOD READ THROUGH TO NAMES LIKE SNAP. DATA DOG, ANALYSTS WERE ABOUT SYSTEMS ISSUES. TESLA DOWN, REGULATORS LOOKING
INTO CONCERNS ABOUT THE STEERING WHEEL FALLING OFF, THE LATEST REGULATORY HEADACHE FOR THE EV MAKER. BREAKING NEWS IN THE LAST HOUR, SILVERGATE ISSUED A STATEMENT TELLING THE MARKET IT IS PLANNING TO WIND DOWN AND LIQUIDATE. A PROFOUND REACTION, DOWN 35%. LET'S GET STRAIGHT TO THE DETAILS. WHAT DO WE KNOW? >> THIS ANNOUNCEMENT FROM SILVERGATE IS NOT A TOTAL SURPRISE IF YOU FOLLOWED THE PREVIOUS ACTIONS FROM THE COMPANY. SILVERGATE FRIDAY ANNOUNCED THEY HAD TO SUSPEND THEIR FLAGSHIP PRODUCTS ON THE PAYMENTS NETWORK, THE PRODUCT THAT ATTRACTED A LOT OF CRYPTO FIRMS TO ON BOARD WITH SILVERGATE IN THE FIRST PLACE. THE COMPANY COULD NOT FILE
THEIR ANNUAL REPORT BEFORE. THEY TALK ABOUT THE RISK OF BEING INVESTIGATED BY THE JUSTICE DEPARTMENT. THE BANK IS GOING THROUGH A WIND DOWN AND THE PLAN IS BEING ABLE TO REPAY CUSTOMERS, WHICH IS GOOD NEWS FOR THE CRYPTO INDUSTRY BECAUSE THE CONTAGION RISK WILL BE LOWER. CAROLINE: YET IT'S INTERESTING, EVEN THOUGH YOU BRACE YOURSELF, YOU SEE A MARKET MOVER LIKE ED SPELLS OUT, BUT ALSO OTHER CRYPTO FRIENDLY BANKS LIKE SIGNATURE BANK AND ALSO COINBASE ON THE DOWNSIDE. >> THE BIGGEST CHALLENGE FOR THE CRYPTO INDUSTRY NOW IS PLAYERS ARE FINDING IT DIFFICULT TO GET ACCESS TO BANKING SERVICES. SILVERGATE WAS ONE OF THE VERY
FEW BANKS IN THE SPACE THAT WERE FRIENDLY WITH CRYPTO COMPANIES WILLING TO OPEN A BANK ACCOUNT WITH THEM AND TAKE DEPOSITS FROM CRYPTO FIRMS. SIGNATURE IS ONE OF THE OTHER BANKS, BUT THAT BANK HAS ANNOUNCED THEIR PLAN TO SCALE BACK FROM SERVING CRYPTO CUSTOMERS. RIGHT NOW, THERE ARE CONCERNS AMONG CRYPTO PLAYERS AMONG HOW THEY COULD TRANSFER U.S. DOLLAR WHILE FINDING A BANKING PARTNER IN THE U.S. CAROLINE: THANK YOU, WE APPRECIATE IT MIGHT -- AMID ALL THE FALLOUT. SOME WOULD SAY, MORE BREAD-AND-BUTTER, CASH OR MONEY MARKET FUNDS ARE ALL THE RAGE AS WE LOOK AWAY FROM THE LIKES OF CRYPTO. LIZZIE YOUNG IS HEAD OF
INVESTMENT STRATEGY AT SOPHIA. -- SO FI. WHERE ARE PEOPLE GRAVITATING AS WE THINK OF A HIGHER INTEREST RATE ENVIRONMENT? >> I DON'T KNOW THAT PEOPLE ARE NECESSARILY TAKING MONEY OUT OF CRYPTO AND PUTTING IT INTO CASH INSTRUMENTS. I THINK THERE IS A DIFFERENT RISK TOLERANCE.
BUT WE ARE IN A PERIOD WHERE YOU CAN LOOK AT THINGS LIKE THE SIX-MONTH TREASURY YIELD ABOVE 5.2% AND TWO YEAR ABOVE 5% AND YOU ARE GETTING A REALLY GOOD YIELD FOR PARKING YOUR MONEY FOR A PRETTY SHORT PERIOD OF TIME. I WOULD SAY AS AN INVESTOR, WHAT YOU WANT TO LOOK FOR OVER THE SHORT TERM, YOU WANT TO LOOK FOR A VERY OBVIOUS DISLOCATIONS IN MARKETS. RIGHT NOW I DO THINK THIS IS A TIME WHERE THE TREASURY MARKET IS SEEING A BRIEF PERIOD. I DON'T KNOW THAT I WOULD CALL IT A DISLOCATION BUT THERE IS A DISCONNECT BETWEEN THE TREASURY MARKET AND EQUITY MARKET. THIS IS AN OPPORTUNITY AND TREASURIES TO GET A YIELD WE MAY NOT SEE AGAIN FOR MANY YEARS.
ED: THANK YOU FOR JOINING US ON THIS INTERNATIONAL WOMEN'S DAY. WE WERE SHOWING THE NASDAQ PRE-, DURING AND AFTER POWELL. WHERE DOES IT LEAVE US AS WE VALUE TECH SHARES IN PARTICULAR, THIS RESET OF HOW WE THINK ABOUT RATES, BIGGER INCREMENTS AND HIGHER FOR LONGER? >> WHAT HAPPENED THIS WEEK IS JEROME POWELL DID IT AGAIN.
HIS COMMENTS MOVED MARKETS PRETTY QUICKLY IN A BIG WAY. WHAT WE HEARD FROM HIM WAS WE PUT THE POSSIBILITY BACK ON THE TABLE AND IT'S LOOKING TO HAVE ALMOST A 70% CHANCE OF A 50 BASIS POINT HIKE AT THE NEXT MEETING WHICH IS A COUPLE WEEKS AWAY. WHAT IT DID FOR MARKETS IS IT HAS TO FORCE US TO DIGEST THE POSSIBILITY OF NOT THAT STEADY TRIPLE -- TRICKLE OUT OF HIKES WE WERE EXPECTING. ONE OF THE THINGS I FOUND PECULIAR ABOUT THE STATEMENT IS THE FED HAD CONTINUED TO SAY WE WILL NOT REPEAT THE SAME MISTAKES OF THE LATE 70'S AND EARLY 80'S IN A STOP AND START CYCLE. THIS WOULD BE SIMILAR. NOW MARKETS ARE FORCED TO DIGEST A JAGGED RATE PATH. THE BOND MARKET IS HAVING A HARD TIME WITH THAT WHICH IS WHY WE ARE SEEING OVER 100 BASIS POINT INVERSION IN THE 10 YEAR YIELD.
ED: YOU ARE A CHART WATCHER AND I SPENT ALL DAY AGONIZING WITH CAROLINE ON WHICH CHART TO SHOW AND IN THE END, I DECIDED I WILL JUST ASK A QUESTION. YOU ARE REALLY FOCUSED ON JOBS DATA. WHAT WE WERE TALKING ABOUT IN THE TECH SECTOR IS THE BIG HEADLINES AROUND LAYOFFS BUT THE DATA DOES NOT NECESSARILY REFLECT THOSE PEOPLE BEING OUT OF WORK. HOW ARE YOU READING THAT THE TECH HEADLINES WHEN IT COMES TO LAYOFFS? >> WHAT HAPPENED WITH TECH HEADLINES IS THEY HURT SENTIMENT IN THE SHORT TERM, BUT TECH JOBS DID NOT MAKE UP A HUGE PORTION OF THE LABOR FORCE AND OR PEOPLE WHO WERE LAID OFF WERE NOT GOING TO CLAIM UNEMPLOYMENT SO WE DID NOT SEE IT IN THE DATA. WE DID NOT SEE IT IN THE HEADLINE STUFF WE WOULD HAVE EXPECTED TO.
HOWEVER WE GOT DATA TODAY. THE JOLTS DATA IS STILL STRONG IN THE SENSE THAT THERE ARE A LOT OF JOBS OPEN, THERE STILL A 5 MILLION PERSON GAP BETWEEN THE JOBS AVAILABLE AND PEOPLE WHO ARE UNEMPLOYED SO THE LABOR MARKET REMAINS TIGHT. HOWEVER THERE WAS SOMETHING UNDER THE SURFACE. IF YOU LOOK AT CONSTRUCTION JOBS OPEN, THAT FELL MONTH OVER MONTH BY 49%. THAT IS A HUGE DROP. I DON'T WANT TO RULE OUT THE POSSIBILITY THAT IT WAS SEASONAL OR JUST AN ANOMALY. THAT COULD BE THE CASE BUT IT
IS A VERY BIG DROP. THE REASON TO WATCH CONSTRUCTION JOBS THIS BECAUSE THEY TEND TO LEAVE THE OVERALL MARKET. IF THAT BECOMES A CANARY IN THE COAL MINE, THAT IS SOMETHING WE WILL LOOK BACK ON AND SAY THAT IS WHERE THE BREAK STARTED TO HAPPEN. CAROLINE: MEANWHILE THE INVERSION OF YIELD CURVE HAS BEEN SCREAMING TOO MANY, THE SESSION IS IN THE CARDS FOR A WHILE. IF YOU ARE LOOKING AT PUTTING MONEY TO WORK IN MORE GROWTH ORIENTATED NAMES, IS NOW THE TIME? >> STRAIGHTFORWARD GROWTH NAMES, I WOULD PROBABLY NOT BY. I WOULD NOT DO THAT RIGHT NOW PARTICULARLY BECAUSE OF SUCH A BIG RALLY FROM THE START OF THE YEAR AND THE VALUATIONS DID GET MORE INFLATED. REGARDLESS OF WHAT HAPPENS WITH
MARKET DIRECTION FROM HERE, IN ANY BEAR MARKET, THERE ARE NAMES THAT DO BETTER. YOU COULD INDEX TOWARDS HIGH-QUALITY GROWTH NAMES AND HIGH CASH FLOW. ONE OF THE PLACES TO LOOK FOR GROWTH IS IN THE HEALTH SPACE. THEY ARE HEAVILY IN BIOTECH AND FIRMER.
YOU WILL GET GROWTH OPPORTUNITY IN THOSE NAMES WITHOUT THE RATE SENSITIVITY YOU WOULD GET IN CLASSIC TECHNOLOGY COMMUNICATIONS AND CONSUMER DISCRETIONARY. IT IS NOT TOP ON MY LIST RIGHT NOW OF THINGS TO BUY. MOSTLY BECAUSE A LOT OF TIMES WHEN YOU LOOK AT WHAT LEADS YOU INTO A MARKET PEAK, IT IS NOT THE SAME THAT BRINGS YOU OUT OF A MARKET TROUGH. I EXPECT THERE WILL BE A
ROTATION AND DIFFERENT SECTORS LEAD ON THE OTHER CITED. ED: ALSO ASKING ON TWITTER, WHICH CONFERENCE HAS TO STRONGER QUARTERBACKS SMART AFC OR OTHERWISE. [LAUGHTER] I DON'T KNOW WHAT THAT WAS ABOUT. >> I WILL TELL YOU. I AM A GREEN BAY PACKER FAN FROM WISCONSIN. AARON RODGERS IS RIGHT NOW IN THE MIDST OF A DECISION OF EITHER STAYING WITH THE PACKERS OR GOING TO THE JETS. THAT'S WHAT THE QUESTION WAS
ABOUT. ED: YOU ARE TELLING A FAIRWEATHER 49ERS FAN. I'M NOT THAT INTERESTED. [LAUGHTER] THANK YOU FOR COMING TO THE PROGRAM. NOW IN OTHER NEWS, UBER IS EXPLORING WHETHER TO SPIN OFF ITS SUPER FREIGHT LOGISTICS ARM IN A SALE OR AS A SEPARATE PUBLICLY TRADED COMPANY. THE MOVE WOULD ALLOW THE CEO TO FOCUS ON THE RIDE-HAILING AND FOOD DELIVERY UNITS.
HE LAUNCHED THE FREIGHT DIVISION IN 2017. THE DECISION IS NOT IMMINENT ACCORDING TO SOURCES. CAROLINE: ANOTHER ONE OF THOSE STORIES YOU'VE BEEN BUSY ON OVERALL.
COMING UP, WE ARE GOING TO DIG INTO THE FACT THAT A MOMENT AGO, IT IS INTERNATIONAL WOMEN'S DAY, BUT THE NUMBERS ARE STILL DEPRESSING WHEN WE COME TO THIS DAY TIME AND TIME AGAIN. ONLY 2% OF VC CAPITAL IN 2022 WAS ALLOCATED TOWARD FEMALE FOUNDERS. THE PERFECT GUEST IS THE FOUNDER OF FEMALE FOUNDERS FUND, A NEW DOUBLE -- ANU DUGGEL COMING UP NEXT. ♪ ED: TIME NOW FOR TALKING TECH. JAPANESE LUNANA EXPLORATION START UP ICE SPACE WHICH PARTNERED WITH ELON MUSK'S SPACEX WILL LIST ON THE TOKYO STOCK EXCHANGE APRIL 12 THE MARKET CAP AT THE TIME OF IPO WOULD BE ROUGHLY ¥19.2 BILLION. ABOUT 140 MILLION U.S. DOLLARS. ON THIS INTERNATIONAL WOMEN'S
DAY, JP MORGAN HAS LOSE IT IS CALLED ANGST SHOCKING. ONLY 5.7% OF STARTUPS IN ASIA PACIFIC ARE LED BY FEMALE ENTREPRENEURS AND PERCENTAGE THAT, WAS STAGNANT FOR FIVE YEARS. . PRIVATE FIRMS IN ASIA POWERED
BY WOMEN INCLUDE AIR WALLET. FUNDING, INVESTOR CONFIDENCE AND OPERATIONAL AND FINANCIAL COMPONENTS, WORRYING DATA. CAROLINE: IT IS WORRYING BECAUSE IT IS RELATIVELY STAGNANT AND SO IS MONEY ALLOCATED TO FEMALE ENTREPRENEURS FROM VC FUNDS. IT WAS THE SAME IN 2014 FOR EXAMPLE. I WANT TO BRING UP A POLE THAT WE PUT TO OUR OWN AUDIENCE ASKING WHETHER THEY THINK MORE FEMALE ENTREPRENEURS WILL BE INSPIRED TO BUILD AND GET MONEY. I'M SAD TO SAY, NO.
GENERALLY YOU ARE NEGATIVE. AND DO DOUGAL IS ONE OF THE PEOPLE TRYING TO CHANGE THAT. SHE FOUNDED THE FEMALE FOUNDERS FUND ALLOCATED TOWARDS BUSINESSES BILLED BY DIVERSE FOUNDERS. TALK TO US ABOUT WHETHER YOU ARE THAT PESSIMISTIC. >> THANK YOU FOR HAVING ME AND HAPPY INTERNATIONAL WOMEN'S DAY.
I THINK THERE'S A COUPLE WAYS TO LOOK AT THE DATA. WE HAVE NOT SEEN HUGE INCREASES IN THE AMOUNT OF OVERALL FUNDING GOING TO WOMEN, BUT WE TRACK DIFFERENT METRICS. PER EXAMPLE IN THE HISTORY OF THE NASDAQ, THERE HAD BEEN THREE IPO'S LED BY FEMALE FOUNDERS BEFORE 2021.
IN THAT YEAR ALONE, THERE WERE SEVEN IPO'S LED BY WOMEN. I THINK AS A FUND THAT INVESTS IN FEMALE FOUNDERS, WE HAVE TO REMAIN OPTIMISTIC AND IT IS MORE IMPORTANT IN TERMS OF THE WORK WE DO, BUT WE ARE SEEING MORE FEMALE CEOS THAT ARE RAISING LARGE GROWTH ROUNDS SO OVERALL, I'M CAUTIOUSLY OPTIMISTIC. CAROLINE: AND YOU ARE BUILDING THAT NETWORK EFFECT, HOLDING SUMMITS WHERE YOU GATHER FEMALE ENTREPRENEURS AND ADVISORS TOGETHER IN ONE RUN JUST LAST WEEK. WHERE ARE YOU ALLOCATING MONEY?
WHAT EXCITING PROBLEMS ARE THE FEMALE FOUNDERS TRYING TO SOLVE? >> A COUPLE AREAS WE ARE EXCITED ABOUT THIS YEAR IN PARTICULAR, AS EARLY INVESTORS IN MAVEN CLINIC, I WOULD SAY DIGITAL HEALTH CARE AS A CATEGORY IS AN AREA WE INVESTED HEAVILY IN THE PAST AND CONTINUE TO BE EXCITED. THE DIFFERENCE THIS YEAR IS HISTORICALLY WE HAVE SEEN A LOT OF FOUNDERS BUILD MORE CURATIVE SOLUTIONS AND WE ARE SEEING MORE AND THE PREVENTATIVE APPROACH SO FOUNDERS LEVERAGING DATA TO HELP MORE AT RISK POPULATIONS TAKE EARLY ACTION. GREAT EXAMPLE IN THE PORTFOLIO IS A COMPANY CALLED GABBY, LEVERAGING DATA TO HELP WOMEN, PARTICULARLY THOSE MORE AT HIGH RISK TAKE EARLIER AND MORE PREVENTATIVE APPROACHES TO JUST MAKING SURE THAT THEY ARE TRACKING THAT WITHIN THEIR HEALTH CARE. CAROLINE: SOME CANCERS FOR EXAMPLE. >> YES, BREAST CANCER FOR EXAMPLE. ANOTHER IS LONGEVITY AND FOUNDERS LOOKING AT FINDING WAYS TO SLOW DOWN OR REVERSE THE AGING PROCESS, LEVERAGING BIOMETRIC DATA, COMPANIES WE HAVE TRACKED. WE'VE ALSO SEEN TWO FEMALE FOUNDED COMPANIES THAT ARE LEVERAGING AT HOME TESTING TO HELP SUGGEST SUPPLEMENTS AND DIFFERENT WAYS IN WHICH PATIENTS CAN TAKE MORE PREVENTATIVE APPROACHES TO AGING. ED:
I WANT TO TALK ABOUT THE FORWARD VISION. WE'VE REPORTED ABOUT SENIOR LEADERS IN SILICON VALLEY OR BEYOND. SUSAN WOJCICKI OR SHERYL SANDBERG LOSING OR LEAVING THEIR ROLES. HOW IMPORTANT IS IT TO SEE A
PATHWAY TO LEADING BIG TECH COMPANIES? >> ABSOLUTELY. THE FACT THAT ALL OF THESE EXITS HAPPENED IN A SHORT TIME IS STRUGGLING. -- IS TROUBLING. I'M VERY HOPEFUL WE WILL SEE YOUNG TALENT RISE AMONG THE RANKS HOPEFULLY RELATIVELY SOON. CAROLINE: ANU DUGGAL, FOUNDING PARTNER OF FEMALE FOUNDERS FUND, WHAT A JOY TO HAVE YOU WITH US.
PLENTY MORE TO COME IN TERMS OF PUBLIC MARKETS. ED: ANOTHER STRONG WOMAN LEADER IN SILICON VALLEY. WE WILL SPEAK ABOUT ADOBE OPENING A BRAND-NEW OFFICE TOWER IN CALIFORNIA BUT ALSO PLEDGING NO MASS LAYOFFS THIS YEAR AT A TIME WHERE TECH PEERS ARE DOING EXACTLY THAT. OUR EXCLUSIVE INTERVIEW WITH ADOBE'S CHIEF PEOPLE OFFICER GLORIA CHEN. THIS IS BLOOMBERG.
ED: THIS IS A CASE OF BUCKING THE TREND. ADOBE IS OPENING A BRAND-NEW 18'S TOWER -- 18 STORY TOWER WITH ROOM TO GROW AS THE REST OF THE SECTOR CUTS BACK ON JOBS AND REAL ESTATE. I SPOKE WITH THEIR CHIEF PEOPLE OFFICER, GLORIA CHEN, INSIDE THE FOUNDERS TOWER. >> THE SPACE WE HAVE DESIGNED HERE IS NOT YOUR TRADITIONAL OFFICE SPACE OF DESKS AND CUBICLES. WE HAVE CREATED OVER 400 DIFFERENT KINDS OF WORKING ENVIRONMENTS, SO EVERYTHING FROM A LARGE TOWN HALL TO TEAM NEIGHBORHOODS, COLLABORATION SPACES, FOCUS SPACES. IT IS A LOT OF DIFFERENT USES
UNDER ONE ROOF. WE ARE COMMITTED TO CONTINUING TO GROW HERE FOR THE LONG-TERM, BUT THIS IS NEW SPACE FOR NEW WAYS OF WORKING. REPORTER:REPORTER: DOES THAT INCLUDE A HOPE TO HIRE? RIGHT NOW IT IS NOT JUST PULLING BACK IN REAL ESTATE FROM BIG TECH. WE SEE LAYOFFS. ADOBE AT THE END OF LAST YEAR DID A SMALL CUT. THOSE ARE KIND OF IN CONGRESS IDEAS, ANNOUNCING A NEW SPACE AND BEAUTIFUL NEW TOWER, WHILE AROUND YOU WE ARE SEEING CUTBACKS.
>> OUR PRODUCTS AND TOOLS POWERED THE DIGITAL WORLD. WE ARE COMING FROM A POSITION OF STRENGTH. WE ARE POSTING GREAT FINANCIAL RESULTS.
WE HAD GREAT EARNINGS LAST QUARTER. WE ARE CONTINUING TO GROW. WE ARE INVESTING. WE ARE BEING JUDICIOUS WITH MANAGING EXPENSES. WE ARE CONTINUING TO GROW AND WE ARE INVESTING IN THE SPACE TO SUPPORT OUR EMPLOYEE BASE HERE. REPORTER:
YOU ARE THE CHIEF PEOPLE OFFICER AND THERE'S A QUESTION ABOUT YOUR DAY TODAY. WHEN YOU ARE POTENTIALLY BRINGING IN AN OUTSIDE ORGANIZATION, NEW PEOPLE, HOW DO YOU MATCH THE CULTURES AND INTEGRATE? THAT'S A BIG PART OF WHAT YOU ARE ANNOUNCING WITH THE FOUNDERS TOWER. A NEW SET OF CULTURAL NORMS AND RULES.
>> YES. SINCE YOU MENTIONED THAT, ALONG WITH THE 40TH ANNIVERSARY, WE DID ROLLED OUT OUR NEW VALUES. AS WE THINK ABOUT IN THIS PARTICULAR MOMENT IN TIME, HAVING CELEBRATED OUR 40TH ANNIVERSARY, MOVING FORWARD INTO THE NEXT DECADE OF GROWTH, THINKING ABOUT HOW DO WE PREPARE FOR THE FUTURE AND FUTURE GROWTH? AS IT RELATES TO FIG AND IN GENERAL, ALL OF OUR ACQUISITIONS, WE LOOK AT NOT ONLY STRATEGIC FIT, FINANCIAL SENSE, BUT ALSO CULTURAL FIT. THAT IS SOMETHING THAT FACTORS INTO ACQUISITIONS WE MAKE AHEAD OF THOSE DECISIONS, AND SO THAT IS VERY IMPORTANT TO US. REPORTER: CAN YOU GUARANTEE THAT THERE WON'T BE MORE LAYOFFS AND YOU WON'T DOWNSIZE IN OTHER AREAS? >> WE ARE IN A GREAT POSITION OF STRENGTH.
WE POSTED GREAT EARNINGS. HOW WE ARE MANAGING IS TO BE PRUDENT ABOUT INVESTMENTS AND ABOUT HIRING. WE ARE COMMITTED NOT HAVING COMPANYWIDE LAYOFFS. ED: THAT WAS ADOBE'S CHIEF PEOPLE OFFICER GLORIA CHEN, AND A, PROMISE NO COMPANYWIDE LAYOFFS. CAROLINE: SHE IS SORT OF VINDICATED WITH WHY THE DIGITAL TOOLS THEY BUILD, THEY ARE NOT GOING ANYWHERE EVEN IN A RECESSIONARY ENVIRONMENT. WHEN YOU THINK ABOUT THE
BUILDING NATURE OF SOMEONE REPORTING AROUND META-, JUST ANNOUNCE EATING -- ANNUNCIATING WHAT CAN BE DONE WITH ADOBE. ED: PART OF THE EXIDE HE AT META IS THEY DON'T KNOW IF THE ECONOMY WILL GET WORSE. GLORIA CHEN'S POINT IS THEY ARE BEING PRUDENT. WE DID NOT EVEN COVER IT IN THE SECTION, BUT THEY ARE ALSO PROMOTING HYBRID WORKING, HAVING JUST OPENED A CENTRAL BUILDING. REPORTER: MAYBE YOU CAN REALLY ENJOY THOSE ADDED EXTRAS FOR THREE DAYS OF THE WEEK. COMING UP, GOOGLE'S PLAN CANNOT -- TO CATCH UP TO CHAT GPT.
HOW FAST CAN THEY MOVE? >> IT'S THE CONTROL OF THE DATA, IT'S THE CONTROL OF THE ALGORITHM WHICH ALLOWS THEM TO CONDUCT INFLUENCE OPERATIONS. IS THE CONTROL OF THE SOFTWARE WHICH ALLOWS THEM TO HAVE ACCESS TO MILLIONS OF DEVICES. HE PUT ALL OF THOSE THREE THINGS TOGETHER AND AGAIN COME BACK TO THE STARTING POINT WHICH IS THIS IS A TOOL THAT IS ULTIMATELY WITHIN THE CONTROL OF THE CHINESE GOVERNMENT AND TO ME, IT STREAMS OUT WITH NATIONAL SECURITY CONCERNS. ED: SOME OF THE FBI DIRECTORS HEARING ON GLOBAL THREATS WHEN HE TALKED ABOUT TIKTOK'S ABILITY TO ULTIMATELY DIVIDE AMERICANS. YESTERDAY, SENATOR MARK WARNER UNVEILED THIS BILL TO CONTAIN DATA. FOR MORE LET'S BRING IN OUR GUEST. SNAP WAS DOWN
SIGNIFICANTLY AND IT HAD BEEN HIGHER. THE IDEA THAT EVERYONE TOOK A BEAT AND IT WAS LIKE IF YOU LOOK AT THE CONTENT OF THIS BILL, THE CHANCES OF AN OUTRIGHT BAN AREN'T THAT HIGH SO THE OPPORTUNITY FOR SNAP TO GATHER GOBLET TIKTOK USERS IS NOT REAL. WHERE DO WE STAND? >> THIS IS THE FOURTH BUILT -- BILL TO HIT CONGRESS. IT GIVES AN OPPORTUNITY TO FORCE A SALE OR -- IT WOULD MEAN TIKTOK WOULD REMAIN HERE IF THIS BILL PASSES AND PRESIDENT BIDEN PLANS TO ACT ON IT. SNAP HAS SUFFERED BECAUSE
TIKTOK IS CANNIBALIZED THEIR USERS. THE YOUNG FOLKS ARE GETTING OLDER, THE 100 MILLION AMERICANS SPENDING 95 MINUTE -- 95 MINUTES A DAY ON TIKTOK. THERE WORD ABOUT TIKTOK AND SNAP WOULD BE HAPPY IF THIS COMPANY WOULD NO LONGER EXIST IN THIS MARKET. CAROLINE:
HOW WAS TIKTOK RESPONDING TO ALL OF THIS? GUEST: TIKTOK WOULD REALLY IT SEEMS PREFER FOR THIS PROCESS TO BE KICKED BACK TO THE LONG-RUNNING REVIEW PROCESS THAT HAS BEEN HAPPENING BEHIND THE SCENES. IS GOING ON FOR YEARS. IT IS THE THING THAT HAS GOTTEN CONGRESS IMPATIENT AND PUSHED THEM TO PROPOSE THESE BILLS. THEY SAY THEY PUT ALL THE SECURITY MEASURES IN PLACE THAT WOULD ADDRESS THE CONCERNS THAT DIRECTOR WRAY IS TALKING ABOUT BUT THE SKEPTICS ON THE HILL AND IN THE DOJ AND FBI DON'T SEEM TO BE BUYING WHAT TIKTOK IS SELLING . THIS IS PROBABLY THE LEAST IDEAL VENUE AND CONGRESS FOR TIKTOK TO BE FACING SOME OF THESE DETRACTORS WHO AS THEY HAVE GONE ON HILLS AND AROUND ROBIN TOUR TRYING TO CONVINCE FOLKS THEY SHOULD STAY, THEY HAVE CONTINUED TO RUN INTO A WALL OF FOLKS NOT BELIEVING THEM. ED: THANK YOU.
MOVING ONTO ANOTHER TECH GIANT, GOOGLE. FOR YEARS, AI WAS GOOGLES THING UNTIL OPEN AI SWOOPED IN AND KIND OF STOLE THEIR THUNDER. NOW ARMS RACE IS ON AND AS A RECENT BUSINESSWEEK PIECE POINTS OUT, THE TECH GIANT HAS DECLARED A CODE RED. A DIRECTIVE THAT ALL OF ITS MOST IMPORTANT PRODUCTS, THOSE WITH MORE THAN ONE BILLION USERS US TO INCORPORATE -- MUST INCORPORATE GENERATIVE AI WITHIN MONTHS. LET'S DO A DEEPER DIVE INTO GOOGLE AND SOME OF THE CONSIDERATIONS BEHIND THE AI PUSH WITH GOOGLE'S VICE PRESIDENT FOR TRUST AND SAFETY. WELCOME TO THE PROGRAM, THANK YOU FOR YOUR TIME ON INTERNATIONAL WOMEN'S DAY.
THE MESSAGE FROM YOU IS BEING BOLD BUT RESPONSIBLE. HOW DIFFICULT IS THAT MAKE YOUR JOB RIGHT NOW? GUEST: THANK YOU IS GREAT TO BE HERE. GOOGLE HAS MADE A PLAN THAT WE PLAN TO BE BOLD AND RESPONSIBLE BUT IT'S IMPORTANT TO KNOW THAT GOOGLE HAS BEEN IN THE AI GAME FOR QUITE SOME TIME. WE HAVE LED ON CUTTING-EDGE RESEARCH AND WHEN I FIRST CAME TO GOOGLE SEVERAL YEARS AGO, I LED THE TEAM THAT DRAFTED AND LAUNCHED GOOGLES AI PRINCIPLES WHICH IS THE BLUEPRINT FOR HOW WE HAVE APPROACHED AI RESPONSIBLY. WE X TITLE EXTERNALIZED THOSE IN 2018 AND IT HAS SERVED AS THE NORTH START FOR US AND OTHERS IN THE INDUSTRY. THE FOUNDATION IS ABOUT AI BEING SOCIALLY BENEFICIAL AND IT ENABLES HUMANS AND WORKING TO ADDRESS ANY UNINTENTIONAL CONSEQUENCES. ED:
I'M INTERESTED IN WHAT YOU'RE WORKING ON DAY-TO-DAY. HOW DO YOU BRING TOGETHER THE SMART PEOPLE YOU'RE WORKING WITH WITH GOVERNMENT, LEADERS, ACADEMIA? GUEST: I WAS DRAWN TO GOOGLE'S MISSION WHICH IS ABOUT ORGANIZING INFORMATION MAKING IT USABLE AND SAFE. WE MAKE SURE THAT ANYTIME YOUR INTERACTING ONLINE SEARCHING FOR INFORMATION FOR A SCHOOL REPORT OR BUYING A PRESENT FOR A FRIEND OR LOOKING FOR DIRECTIONS TO A LOCAL RESTAURANT, THAT YOU CAN DO THAT IN A SAFE AND TRUSTED WAY. IT IS AN INCREDIBLY DYNAMIC SPACE, THE WORK IS ALWAYS EVOLVING AND WE TAKE ON NOT JUST KEEPING PEOPLE SAFE WHEN THEY'RE USING OUR PRODUCTS BUT ALSO THINGS AROUND QUIBBLE ELECTION INTEGRITY, MAKING SURE PEOPLE IN UKRAINE HAVE ACCESS TO HIGH-QUALITY INFORMATION. CAROLINE: THEREIN IS THE ISSUE OF MISINFORMATION DISINFORMATION SOMETHING THAT PEOPLE ARE WORRIED ABOUT WHEN IT COMES TO LARGE LANGUAGE MODELS. IS THAT YOUR KEY CONCERN? WHERE ARE THE RISKS WERE YOU? GUEST: WE HAVE MANY YEARS OF EXPERIENCE AND MAKING SURE THAT NO MATTER WHAT GOOGLE PRODUCT YOU ARE USING, YOU HAVE ACCESS IN EASY WAYS TO HIGH-QUALITY AUTHORITATIVE INFORMATION. THINK ABOUT GOOGLE SEARCH.
I'M GOING TO USE THE EXAMPLE OF GLOBAL ELECTIONS. WANT TO MAKE SURE THAT WHEN MAJOR ELECTIONS ARE TAKING PLACE, PEOPLE FIND OUT WHERE TO VOTE HOW TO VOTE WHAT TIME THE POLLING STATION OPENS, YOU CAN IMMEDIATELY GO TO GOOGLE SEARCH AND FIND THAT INFORMATION. INFORMATION QUALITY HAS BEEN AT THE HEART OF WHAT WE DO FOR A LONG TIME AND THIS NEXT WAVE IS GOING TO BE NO DIFFERENT. WE TAKE MISINFORMATION AND DISINFORMATION VERY SERIOUSLY. MY TEAM DEVELOPS POLICIES AND ENFORCES THEM AROUND THINGS LIKE MEDICAL MISINFORMATION TO MAKE SURE THAT USERS CAN TRUST THE INFORMATION THEY FIND IN THE MATTERS -- IN THE MOMENTS THAT MATTER MOST. CAROLINE: WHAT IS IT THAT HELPS CONTENT MODERATION? IS IT ABOUT PEOPLE? AI TRAINERS? OR AI VERSUS AI USING MACHINE LEARNING AND THE LIKE? GUEST: IT'S ALL OF THE ABOVE.
IF YOU LOOK AT GOOGLES AI PRINCIPLES, THEY REALLY HELP. WE RELEASED AI PRINCIPLES AND PRACTICES AT THE SAME TIME. IT STARTS WITH HOW THE MODELS ARE DEVELOPED AND TRAINED AND MAKING SURE YOU'RE DOING THAT INTENTIONALLY, THOUGHTFULLY, RESPONSIBLY WHILE YOU ARE BEING OLD IS WHAT WE ALL WORK AT GOOGLE TO DO. ED: I WANT TO GIVE YOU A SPECIFIC EXAMPLE AND APPRECIATE THAT YOU ARE FOCUSED ON GOOGLE IS DOING. OTHER THINGS THAT IS BEEN POINTED OUT ABOUT CHET GPT IS IT GENERATING SALACIOUS OR I GUESS I'M LOOKING FOR THE RIGHT WORD, BUT I GUESS WORRYING CONTENT IN RESPONSE. HOW SPECIFICALLY DO YOU TACKLE
THOSE ISSUES? IN ORDER TO KEEP USERS SAFE. GUEST: IT IS REALLY OR IT -- EARLY DAYS FOR THIS TECHNOLOGY. WE'RE THINKING ABOUT WHAT THE MOST BENEFICIARY -- BENEFICIAL USES WILL BE AN HOW TO PUT BOUNDARIES AROUND. AT GOOGLE WE HAVE PEOPLE WORKING INTERNALLY AND EXTERNALLY WORKING TO DO TESTING TRAINING TO FIND OUT HOW THE PRODUCTS ARE GOING TO PERFORM. THIS IS ALSO A WHOLE OF SOCIETY QUESTION. EXTERNALIZING OUR PRINCIPLES,
MAKING SURE THAT ENTERPRISE CUSTOMERS REALLY KNOW HOW TO RESPONSIBLY DEPLOY AI AND WORKING WITH GOVERNMENT, CIVIL SOCIETY STAKEHOLDERS TO MAKE SURE PEOPLE ARE HUNDRED HARNESSING THE BENEFITS. IT'S AN ALL HANDS ON DECK APPROACH. CAROLINE: ALSO TO GET IT TO THE USER BASE AS QUICKLY AS POSSIBLE. IS THE PANDORA'S BOX OPEN NOW BECAUSE ULTIMATELY, WE HAVE GONE LIVE, YOU ARE GOING LIVE WITH BARD TO A CERTAIN EXTENT. GUEST: I THINK WE ARE IN THE PHASE WHERE WE ARE STILL LEARNING AND TRAINING AND SHAPING THIS TECHNOLOGY. IT'S IMPORTANT TO TAKE A LONGER VIEW. THIS IS EARLY DAYS AND WE'RE
GOING TO BE LEARNING MORE ABOUT HOW TO USE IT MOST BENEFICIALLY. IT'S STILL VERY EARLY. CAROLINE: YOU SPEAK AS A PASSIONATE MOTHER AND SODA WHY THAT -- SO DO I THAT MY CHILDREN DON'T HAVE A LOT OF SAY IN WHAT THEY CAN OR SHOULD CONSUME. THEIR MINDS ARE BOGGLED ON ONE CONSUMPTION ALONE. DO WE HAVE THAT ABILITY TO BREAK THINGS IN THIS ENVIRONMENT? GUEST: GOOGLES PRODUCTS FOR A LONG TIME HAVE BEEN DESIGNED WITH SAFETY INCLUDING FOR CHILDREN IN MIND. WE HAVE CONTROLS THAT WE BUILD IN TO PRODUCTS LIKE THE GOOGLE ASSISTANT WHICH IS AN EARLY VERSION OF INTERACTIVE AI TO MAKE SURE WHEN CHILDREN ARE ASKING HIM FOR INFORMATION, THEY ARE GETTING THE MOST HIGH-QUALITY INFORMATION FOR CHILDREN OUT THERE.
THE POTENTIAL FOR EVERYONE IN BEING ABLE TO HAVE THE TYPE OF KNOWLEDGE AT THEIR FINGERTIPS THE GOOGLE SEARCH HAS PROVIDED FOR A LONG TIME AND WILL CONTINUE TO DEVELOP IS REALLY EXCITING. I DON'T KNOW ABOUT YOU, BUT I AM A MOM AND WHEN I WAS LITTLE, I HAD THE WORLD BOOK ENCYCLOPEDIAS THAT'S HOW I LOOKED UP INFORMATION. IT'S EXCITING THAT I CAN QUICKLY WORK WITH MY CHILDREN TO LEARN AND GROW BECAUSE THE WORLD OF INFORMATION IS AT THEIR FINGERTIPS. BUILDING AND RESPONSIBLE CONSTRAINTS AND MAKING SURE THAT PARENTS AND KIDS KNOW HOW TO USE THIS TECHNOLOGY WELL IS PART OF WHAT WE SEE OUR ROLE IN DOING. ED: YOU MENTIONED EARLIER AND YOUR REMIT IS BROADER THAN AI. THE WAR IN UKRAINE AND THE ISSUE OF DISINFORMATION. CAN YOU TELL ME ABOUT THE WORK
YOU'RE ARE DOING IN THAT THEATER AND THE PROGRESS YOU HAVE MADE OVER THE LAST 12 MONTHS? GUEST: IN THE WAKE OF THE RUSSIAN INVASION OF UKRAINE, GOOGLE AND OTHERS WORKED QUICKLY . THIS IS NOT JUST A WAR PLAYING OUT ON THE BATTLEFIELD, IT'S ALSO A CYBERWAR AND AN INFORMATION WAR. WE QUICKLY ADDRESSED AT ITS ROOT CAUSES OF RUSSIA DISINFORMATION AND ALSO MAKE SURE IMPORTANTLY THAT PEOPLE ON THE GROUND IN UKRAINE AND ALL OVER THE WORLD HAD ACCESS TO HIGH-QUALITY INFORMATION.
GOOGLE PARTNERED WITH THE UKRAINIAN GOVERNMENT TO HAVE AN AIR RAID ALERT AVAILABLE. WE ALSO WORK TO MAKE SURE OUR MAPS ARE AS ACCURATE AS POSSIBLE. THIS WORK IS ONGOING AS THIS TRAGIC MORE UNFOLDS. CAROLINE: ONE THING I WISH THAT MY CHILDREN COULD TYPE IN AND I COULD HIGHLIGHT FOR THEM IS WOMEN IN BUSINESS AND TECHNOLOGY . WHEN YOU ARE SEEING FEMALE
LEADERSHIP TAKING A STEP BACK, HOW DO YOU FEEL AS A WOMAN IN LEADERSHIP AT THIS MOMENT? GUEST: GOOGLE HAS BEEN A REALLY TERRIFIC WAYS FOR ME TO GROW MY OWN CAREER BECAUSE I HAVE HAD INCREDIBLE FETAL -- FEMALE MENTORS. WE ALSO THINK A LOT ABOUT PIPELINE AT GOOGLE. SO MANY OF OUR UP-AND-COMING LEADERS ARE WOMEN. THE LEADERS OF SEARCH, ASSISTANT, WORKPLACE ARE ALL WOMEN. IT CREATES AN INCREDIBLY DYNAMIC ENVIRONMENT. THE WAY WE THINK ABOUT THIS AND TALK ABOUT THIS ON MY TEAM IS THAT DIVERSITY AND HAVING PEOPLE FROM DIFFERENT BACKGROUNDS IS NOT NICE TO HAVE BECAUSE WE ARE SHAPING THE NEXT -- GENERATION OF TECHNOLOGY FOR EVERYONE.
WE INVEST A LOT IN RECRUITING, RETAINING, PROMOTING AND MAKING SURE THAT MY TEAM AND OUR COMPANY IS A PLACE WHERE WOMEN CAN FLOURISH. I HAVE CERTAINLY BENEFITED FROM A TERRIFIC ENVIRONMENT THERE AND I AM GLAD WE ARE HAVING THIS CONVERSATION BECAUSE IT IS INCREDIBLY IMPORTANT. CAROLINE: THANK YOU HAVING THAT CONVERSATION. MEANWHILE, SPOTIFY HAS JUST DOUBLED DOWN ON PODCASTING THIS TIME WITH A FOCUS ON THE VIDEO ELEMENT. THE COMPANY HAS INVESTED IN PODCASTING OVERALL AND IT PLANS TO LEAN INTO THE VIDEO ELEMENT. THE HEAD OF THE DIVISION SAYS THE GOAL IS TO APPEAL TO YOUNGER LISTENERS. ED: COMING UP, THIS IS A
CONVERSATION YOU AND I ARE VERY EXCITED ABOUT. WHEN THE RUNWAY IS ADDING MORE ITEMS FOR SUBSCRIBERS FOR FREE. WE WILL DISCUSS THE ENHANCED CUSTOMER EXPERIENCE. WHY IS ED EXCITED? YOU WILL FIND OUT WHY.
THIS IS BLOOMBERG. CAROLINE: WE WERE JUST TALKING ABOUT SPOTIFY, BUT WHAT ABOUT RENT THE RUNWAY. IT IS OFFERING SUBSCRIBERS MORE BANG FOR THE BUCK. IT ANNOUNCED A 75% -- 25% BOOST FOR SUBSCRIBERS. IF YOU ARE SIGNED UP FOR EIGHT ITEMS PER MONTH, NOW YOU CAN CHOOSE 10. THE CEO IS JOINING US.
IS THIS A PUSH FOR NEW SUBSCRIBERS OR TO KEEP THE ONES WHO ARE ALREADY ADDICTED? GUEST: THIS IS ABOUT OFFERING MORE VALUE TO THE CUSTOMERS WE ALREADY HAVE. WE HAVE INCREASED ALL OF OUR SUBSCRIPTION PLANS, ALL OF OUR SUBSCRIBERS ARE GOING TO GET 25% MORE VALUE FOR THE SAME PRICE. THAT EFFECTIVELY MEANS THEY CAN USE US MORE IN THEIR DAY-TO-DAY LIFE AND THIS CAN BECOME A UBIQUITOUS PART OF HOW THEY GET DRESSED AS A RESULT. ED: I WANTED TO DO SOME RESEARCH GOING INTO THIS INTERVIEW. I WANTED TO TALK TO YOUR USER BASE. I TALKED MY WIFE WHO IS A
RELIGIOUS USER OF RENT THE RUNWAY ON A WEEKLY BASIS. SHE POINTED OUT THE CHANGES YOU HAVE MADE, BUT SHE ALSO RAISED AN INTERESTING QUESTION ABOUT TECHNOLOGY WHICH IS THE APP AND HOW YOU MAKE ITEMS MORE DISCOVERABLE. SHE WANTS TO KNOW ABOUT THINGS LIKE ARTIFICIAL INTELLIGENCE, HOW YOU ARE ABLE TO CHOOSE THIS ADDITIONAL ASCOT OF ITEMS YOU CAN GO FOR? -- BASKET OF ITEMS YOU CAN GO FOR? GUEST: WE HAVE A GREAT IS THIS MODEL. IF YOU ARE A RETAILER, MAYBE CUSTOMERS COME TO YOU ONCE A YEAR AND THEY BUY ONE OR TWO UNITS PER YEAR.
OUR CUSTOMERS ARE PICKING OVER 100 ITEMS PER YEAR FROM US. THE WAY THEY BROWSE THEY EXPERIENCE, THE WAY THEY FIND AND DISCOVER INVENTORY ON OUR PLATFORM HAS TO BE EVEN EASIER, MORE MAGICAL THAN THE BEST IN E-COMMERCE AND WE ARE INVESTING A HUGE AMOUNT THIS YEAR IN ENHANCING OUR USER EXPERIENCE MAKING THE APP EASIER TO USE AND FINDING WAYS FOR CUSTOMERS TO SEARCH FOR INVENTORY AS DIVERSE AS YOUR WIFE'S 70'S PARTY THIS WEEKEND TO GOING TO WORK OR ON A VACATION. ED: DON'T REVEAL MY SOCIAL PLANS. [LAUGHTER] IT IS INTERNATIONAL WOMEN'S DAY, WE ARE PLEASED TO HAVE YOU ON THE PROGRAM. THIS IS CLEARLY TARGETED AT A FEMALE AUDIENCE. HOW MUCH OF A PREMIUM IS THAT FOR YOU? HOW HARD IS IT TO RESIST THE URGE TO BRANCH OUT INTO MENSWEAR AS WELL? GUEST: WE HAVE JUST SCRATCHED THE SURFACE OF WHAT THIS BUSINESS IS GOING TO BE. THE FIRST DECADE, WE HAD TO
CONVINCE WOMEN THAT WERE ENCLOSED THAT OTHER WOMEN HAD WORN BEFORE WAS COOL, ASPIRATIONAL, SMART. NOW THE SECONDHAND IS A PART OF HOW WE ALL GET DRESSED, THE TAILWINDS FOR OUR BUSINESS HAVE NEVER BEEN STRONGER. THE OTHER TAILWIND IS THAT WOMEN NEED AND WANT MORE VARIETY IN THEIR WARDROBE THAN EVER BEFORE BECAUSE OF SOCIAL MEDIA, BECAUSE WE ARE PRESENTING OURSELVES TO THE WORLD EVERY DAY VIA TIKTOK AND INSTAGRAM.
THIS IS A MORE AFFORDABLE MORE SUSTAINABLE WAY TO GET THAT VARIETY IN YOUR WARDROBE. CAROLINE: YET THERE IS MORE COMPETITION. THERE'S A WHOLE HOST SUDDENLY POPPING. ARE YOU WHERE TO PUT THAT COMPETITION? GUEST: I LOVE COMPETITION BECAUSE IT MEANS IT'S A REAL MARKET. ALL THAT RENT THE RUNWAY HAS TO BE IS THE BEST AND WE HAVE THE MOST PREMIUM ASSORTMENT, THE BEST DESIGNER BRANDS ON OUR PLATFORM. WE ARE INVESTING AN ENORMOUS AMOUNT IN OUR CUSTOMER EXPERIENCE TO FIND BROWSING EVEN EASIER.
THIS POINTS OUT THAT IT'S A REAL MARKET NOW AS OPPOSED TO JUST AN IDEA THAT WE HAD. CAROLINE: WHEN YOU WENT PUBLIC, AMAZING ANECDOTE THAT YOUR DAUGHTER THOUGHT ONLY WOMEN COULD RUN BUSINESSES AND YOU HAVING TO PAINFULLY POP THE BUBBLE THAT YOU HAD GIVEN TO HER AND THAT WAY. TALKING TO HER DAUGHTER THINKING ABOUT THIS BUSINESS FOR THE LONGEVITY, IT'S ABOUT PROFITABILITY ALSO.
HOW DO YOU GET THERE WHEN YOU ARE OFFERING THINGS MORE FREELY? GUEST: WE HAVE MADE FINANCIAL TRANSFORMATION IN THE BUSINESS OVER THE LAST FEW YEARS. HAVE DRIVEN THE BUSINESS TO A GROSS MARGIN OVER 40%. WE HAVE RESTRUCTURED OUR DEBT, CONDUCTED A RESTRUCTURING. THIS IS THE YEAR WE ARE GOING TO SEE SIGNIFICANT IMPROVEMENT TO OUR CASH BURN AND THE WAY WE GET PROFITABILITY IS BY GROWING. EVERY ADDITIONAL DOLLAR OF
GROWTH THAT WE DELIVER THIS YEAR, $.40 GOES TO THE BOTTOM LINE. WE ARE EXCITED TO GROW THE BUSINESS TO BRING IT TO PROFITABILITY AND BACK TO MY DAUGHTER AURORA, I WORK SO HARD AT WHAT I DO BECAUSE I WANT HER CONCEPT OF RENT THE RUNWAY, SHE THINKS IT MEANS GIRLS RUN THE WORLD. I WANT HER TO LIVE IN A WORLD WHERE THAT CAN BE MORE TRUE THAN IT IS RIGHT NOW. CAROLINE:
TO THAT POINT, A PARENT OF DAUGHTERS AS WE BOTH ARE, WHY ARE WE NOT SEEING MORE WOMEN RUN THE WORLD IN THAT RESPECT? WERE WE NOT SEEING MORE COMPANIES BORN RUN BY FEMALES? RIGHT NOW LOOKING AT A 2% CAP IT WOULD SEEM BEING ALLOCATED TO DIVERSE FOUNDERS. GUEST: IT'S ALL ABOUT THE MONEY AND AT LATER STAGES. THERE'S A GOOD AMOUNT OF MONEY GOING TO WOMEN AT THE SEED PHASE. WE ALL KNOW THE MORE MONEY YOU ARE ABLE TO RAISE, THE BETTER YOUR CHANCE FOR SUCCESS. IT'S ABOUT FUNDING WOMEN WHO ARE FURTHER IN THE TRAJECTORY OF BEING NORSE.
IT'S ABOUT MENTORING THOSE WOMEN AND HAVING MALE CEOS AND SCALING THEIR LEADERSHIP. I'VE BEEN MENTORED BY SOME OF THE BEST CEOS OUT THERE WHO I CONTINUE TO LEARN FROM AND IT'S A COMBINATION OF MONEY AND MENTORSHIP THAT WILL GET WOMEN INTO POSITIONS OF POWER. ED: TALKING ABOUT SO MANY OF THE THEMES WE HAVE BEEN DISCUSSING ALL OUR LONG. COMING UP, BARBIE'S NEW DOLLS SUPPORT SOME OF THOSE TOP WOMEN WE HAVE BEEN TALKING ABOUT IN TECHNOLOGY. WE WILL DISCUSS ALL OF THAT
NEXT. THIS IS BLOOMBERG. CAROLINE: GOING VIRAL TODAY, I SOUGHT AS PART OF INTERNATIONAL WOMEN'S DAY. TELL CREATING A NUMBER BARBIE DOLLS BASED ON LEADING WOMEN IN STEM RESEARCH. AMONG THEM, THREE SISTERS.
ONE OF THEM THE LONGTIME CEO OF YOUTUBE. THIS IS GLOBAL. THEY HAVE MEXICAN ENTREPRENEURS, SCIENTISTS IN THE U.K., FRENCH THE LAUGHTER PRESSED HER BARBIE'S BUILDING THESE ROLE MODELS. ED: THOSE ARE THREE NAMES SO IMPACTFUL IN THE WORLD OF TECH AND SCIENCE. NEW GENERATION BECOMING EXPOSED
TO THEM. IMAGINE STEVE JOBS DOLLS. QUITE PROFOUND. CAROLINE: THAT DOES IT FOR THIS EDITION
2023-03-10 15:09
