TSMC Reports Earnings and Google Fires 28 Employees | Bloomberg Technology

from the heart of where Innovation money and power Collide in Silicon Valley and Beyond this is Bloomberg technology with Caroline Hyde and Ed [Music] lllo I'm Caroline Hyde at Bloomberg's world's headquarters in New York and I'm Ed llo in San Francisco disc go this is Bloomberg technology coming up we'll break down tsmc's first quarter earnings report that's as the company scales up profit but scales back its outlook for a chip Market expansion Plus Google fires 28 employees after they were involved in protests against project Nimbus to provide Israel's government and Military with AI and cloud services we'll bring you the details and Cisco's plan for keeping AI systems safe from Attack artificial intelligence itself of course we'll discuss the company's new safeguarding approach and so much more throughout this hour but first and we check in on these markets and actually a little bit of optic in the NASDAQ in some of those technology stocks to say we're up about 510 of a percent now elsewhere we'd sort of been Treading Water we' been digesting what has been quite a harsh selloff throughout the week in stocks and indeed in bonds as we really start to digest just two cuts for the rest of the year if that coming from the Federal Reserve 10year yield still up again four basis points 4.63 is C of where we currently are standing we lost some of our technology we'll get it back in a minute we're currently seeing the vix on the downside though so some of that volatility that we've seen in the fear index in that gauge just dampening down we're down just about 17 level remember we spiked to 19 on the back of geopolitical risks at the beginning of this week move on have a little look at what's happening in the world of crypto because we had been in fact seeing a bit of a rebound we're up almost 5% on the day but look we're still languishing at about a 63 $64,000 level we going to dig into crypto a little bit more in a moment but Ed what are you watching on the micro well we are going to look at alphabet parent of Google the shares are higher half percent they have been down earlier in the session very shortly in the program we're going to go to our reporter Dave Alber and find out about these jobs that were cut or the the firing as a result from the protest very well read Bloomberg terminal and online a lot of interest in that story the chip sector is a main focus of readers again this Thursday uh let's start with uh tsmc it's now down on the adrs 3.8% have been much lower giving us a maintenance of that capex guide very strong in AI weakness in smartphones remember this is the world's biggest contract manufacturer of semiconductors and then a Bloomberg exclusive Micron is softer half a percent Bloomberg reporting that it's going to get about $6.1 billion in Grants from the US government as part of the chips act grants only but there's a loan component as well and it could come as soon as next week uh there's a lot to discuss and for that we go to Bloomberg's Ian King who leads our semiconductor coverage let's start with tsmc the world pays attention at the moment when tsmc gives us numbers we learned that AI is strong high performance computer is strong potentially smartphone is weak what was your takeaway yeah know that's absolutely right they've confirmed basically the the fears and hopes of of everybody who's watching semiconductors right now smartphones were down steeply and people will be concerned that that's a read on Apple and what they're what's happening to the iPhone particularly in China on the flip side of that HPC high performance Computing which is obviously Nvidia AMD and all of the very large very expensive chips were up strongly pair that then with the news that we had with asml yesterday and the fact that chip equipment perhaps isn't so in demand what is tsmc really trying to Signal here what they're trying to Signal really is you know that as usual they have the best read on what's going on and they're really confirming what's going on in terms of these End Market forces is we've been waiting for the smartphone market to come back for a long time it is coming back in China but unfortunately it's coming back for chips that are probably being made outside the Western ecosystem so that's a concern there for the geopolitics asml is a longer term read on the confidence of a small group of companies doesn't have as much of an indication on what's happening in the short term Ian let's talk about Micron and Bloomberg's reporting that it will get 6.1 billion Grant allocation from the chips act to build capacity in the United States there's a loans component as well but sources are telling us this could get announced next week what do we know about the package micron's been awarded yeah I mean as ever companies want more they want as much as they can probably get this is being seen as roughly what commensurate with sort of micron's role in the value chain here remember they make memory chips that production as with Advanced logic has been moving to East Asia for the last few decades this is uh the Biden Administration saying hey we haven't forgotten about memory that's important too you need that in your phone you need that in your data center so they're enabling Micron to at least bring some production back to this country and we've heard time and time again from the CEO motra really talking about you need to make it worth my while though I could be building manufacturing abroad for much cheaper where in the US is he going to be putting it and really does it make economics sense um it makes economic sense if you get the government subsidies um what San has said all along as you pointed out and and a lot of his colleagues have said the same thing the government here needs to do the bare minimum which is to close that Gap in terms of what it costs between the US and places like Singapore South Korea Taiwan where those facilities are currently being made with a lot of government support with tax regimes with all of these things which help large capital projects like that he's looking at Upstate New York and he's looking at the home base of Micron which is in Boise Idaho Bloomberg Ian King always on for us we so appreciate the analysis when it comes thick and fast across the chip sector mean way meanwhile let's get to Huawei it's released its latest series of smartphones today sustaining its momentum after that breakthrough mate 60 remember that device that helped erode Apple's dominance over in China in that high-end segment now the Pura 70 smartphone Series starts at 76 $6 then goes up from there matching in fact the price point of an iPhone 15 all right coming up on the program Google fires employees staging protests from California to New York over a contract with Israel we're going to have that report next a quick check on Trump media and Technology shares higher 14% in the session adding to the gains of yesterday classic Spa trading there's a lock up until September a lot of activity in warrants Market this is the Spa 101 we're seeing a big dip and now a big rebound this is Bloomberg [Music] [Applause] technology time for talking Tech and in the news Elon Musk is apologizing for incorrectly low Severance packages the Tesla CEO made the rare apology via email and said it has come to his attention that some Severance packages were incorrectly low and it will be corrected immediately the news comes after Tesla slashed Global head count by more than 10% as the eveve maker struggles with slowing demand for electric vehicles plus Apple's CEO Tim Cook is meeting Singapore's incoming prime minister at the tail end of his most extensive southeast Asia tour in years as the company searches for New Growth markets and Manufacturing locations to offset winds in China the trip could pave the way for a more aggressive sales campaign in a densely populated region where Android phones from Samsung xiaomi and the Oppo dominate the market and deliveroo said orders return to growth with a 2% increase in the first quarter driven by strong progress in the food delivery company's International segment users plac 73.5 million orders in the first

quarter the London based company kept its guidance for the year unchanged Cara now there's another story that we're currently following Ed and Google has fired 28 employees after they were involved in protests against a 1.2 billion joint contract with Amazon to provide the Israeli government and Military Ai and cloud services now the protests took place across Google offices in New York in Seattle in California and were led by the no tech for aarti organization Google said physically impeding other employees work and preventing them from accessing our facilities is a clear violation of our policies and completely unacceptable Behavior joining us now now we're pleased to welcome Davey Albert who has helped report on this very sensitive story ultimately Davey and the protest came a day before an all important Israeli government approval right for a 5-year strategic plan to transition to Cloud it's called project Nimbus and this was sensitive for certain employees yeah absolutely I mean especially in the in the midst of the war between Israel and Gaza um employees have really been activated about this issue and have been organizing to try to protest the way that their work contributes to tools that would then serve the Israeli government um which again is engaged in war and so they say that they have a right to you know band together and object to this use of their work and that us labor law actually protects them um from uh sort of consequences from the company discipline from the company because they believe they are within their rights to to to come together over this issue Davey in your story you present a very clear clear chronology of what happened and the perspective of both sides of the situation when I put on social media you were coming on the show one of the questions I got most common was could you tell us a bit more about the the roles of those that were fired what we know about those specifically because it was quite a broad protest and we're saying less than or fewer than 30 people actually lost their jobs yeah so um from the workers we spoke to several of them were software Engineers some of them worked on cloud and there were even some employees who were involved in speaking out against project Nimbus who worked for deep mine which is Google's AI lab um you know these these workers tend to not have specific um visibility into exactly what Israel is doing with their technology because these contracts are so siloed and workers don't you know directly work on on the tools that the Israeli government might use but they build the tools that the Israeli government can then use for any purpose um there's been prior reporting that you know the cloud services that the Israeli government uses is on their own instance private instance of Google cloud and so from that perspective you know employees can't see inside of of that cloud that's um on Israeli soil and being used by Israeli government um but these employees have been obviously following the news um and believe that their work may be not so in a straight direct line um but still does contribute significantly to the way that the technology that Israel is now using and deploying in the war with Gaza when you say Gaza actually not quite right the war between Israel and Hamas of course Hamas deemed of course a a an issue a terrorist organization by the EU and the United States Davey I'm really interested in perhaps is this a tone shift in any way coming from the very leadership of alphabet and indeed Google I mean sunno pitchai how much has he had to weigh in here and decide what the outcome is yeah it it it absolutely is a shift in toe um for so long really the founding culture of Google has been you know to Foster this um sense of open debate and employees are encouraged to speak out about anything really having to do with their work um those were in the early days um but then over the years uh employees have really started to band together over important social issues um you know in 2018 or so there was organizing around sexual harassment allegations from leadership at the company and sort of the the way that they wanted um women wom to be able to speak out about their experiences so there was a walk out um from employees uh around that issue and other issues have also galvanized these employees um you know in 2020 with the killing of um George Floyd and organizing around the black lives matter protests that was another issue but this really has emerged as a particularly sensitive flasho for Google this particular issue with Israel and the company appears to be sending a message that they aren't going to tolerate um this kind of workplace activism anymore Dave you you talked about how the the workforce has been galvanized you note in the final paragraph of your report that despite the response from Google many employees feel that they're getting support uh is that happening contemporaneously and and is there any sense that these strikes or stins will continue or if this is the end of it now it's hard to say Google sent a very strongly worded message to all employees essentially saying this is not um this is not something they will tolerate that it is against company policy um at the same time you know we've heard from employees who have been keeping an eye on the internal messaging that's been happening at the company and several people are actually quite upset by this move um from the company and maybe it'll take a while for them to do another action but it's not out of the realm of possibility um this could continue on for many more months we showed Google's full response and communication at the top of the segment and you can go and read Davey and Julia's story and see it in writing for yourself on bloomberg.com Bloomberg's Davey Alber thank you now coming up on the show Cisco says it's the biggest revamping of its security offerings to date security and AI that conversation coming up next this is Bloomberg [Music] [Music] technology harnessing the power of AI to keep AI software safe from Attack that's the promise of Cisco's latest product hypers Shield I want to go straight to Cisco Executive Vice President and general manager of security and collaboration G2 Patel this is classic Cisco right you you want to do more on services and software but just explain the technology you're going to use AI as the defense tool against an attack on AI infrastructure well Ed you know security is actually one of the most pressing issues of our time and AI is actually being weaponized quite a bit by malicious actors so it only makes sense for us to also use AI effectively to provide machine scale defenses um to organizations so we uh launched what I would call probably one of the most consequential Innovations in the history of Cisco in in the area of cyber security in the past 40 years and um it's called Cisco hypers shield and our our goal over there is to fundamentally reimagine security for this AI world with at AI scale yeah um because it's it's it's very hard to go out and handle these threats at human scale G2 it's been interesting because time and time again people have come on saying look with AI as the aggressor we can also use AI as the protector you really talk about this being a radically new approach how is it radical how is it that new from what's already on the market yeah I think there's it's it's important because you need to make sure that there's a certain set of building blocks that are built on top of which you can build these Solutions and we now have some very advanced Technologies around Hardware acceleration around AI that can allow us to build these very sophisticated capabilities there's many examples I'll give you one particular one the amount of time that it takes from when a vulnerability is announced in the market to when an exploit happens by malicious actors is now down to singled digit days and I think I wouldn't be surprised if it goes down to hours or minutes in the next few um um in the near future and so what we've done is we've actually seen that the P the amount of time it takes to patch that infrastructure is actually still 22 to 45 days right so you've got this massive Gap from when an exploit happens and uh how long it takes to patch the infrastructure we've solved that problem because what we can do now is within minutes have a shield that can put in front of infrastructure that has not been updated that has not been patched so that you can protect the organization from critical infrastructure attacks that might happen to hospitals or financial services organizations and so on G2 you talked about the building blocks what we're talking about is Data Centers rows and rows of serice stacks and we know that that infrastructure buildout is happening it's happened and the spend is committed for more of it is the spend committed to hypers Shield is anyone actually buying this service from you in parallel with that infrastructure buildout well this this was the first day that we announced it to our customers we had about um we had um many of the leading U You Know Chief information security officers over here in the UK where we announced this this product and the most common phrase that I heard was this is completely gamechanging and in fact one of the customers told me I'd like to have two and so I I think if you care about cyber security and if you care about your critical infrastructure being protected uh it's going to be very obvious for you to make sure that you can allocate some focus on something like Cisco hypers shield and the reality is is this is the only one in the market there's no one else who quite handles the problem the way that we are over here of course all of this is surrounding the partnership and increasing partnership that you've been talking through with Nvidia how integral has Nvidia practice been within this the way that we think about this is you have to work with the ecosystem at large rather than being completely kind of a wall Garden so Nvidia is a very important player in Ai and uh we want to make sure that we partner with them so that we can build security specific models we actually take our technology and optimize it for their gpus and so we will continue to work with Nvidia and others and Nvidia we've enjoyed a great partnership with them already and this this one just extends that further G what Nvidia offers is expensive and everyone's been talking about the rush to harness chips to harness energy the expense that's coming with this new world of generative AI how expensive what can you price point your new AI cyber security prevention act so the way that we're going to go out and price this is by workload we Haven an the exact pricing yet this is going to be General availability around the August time frame and so between now and August we will make sure that we actually have more information on pricing but our our philosophy is to price for Mass market right we want to make sure that we have high unit volume so we can get to many many customers within a very quick amount of time G there is a human safety net element of this you're not handing over complete control to the defense of critical infrastructure just explain the safety net the way I think about this is humans are always apprehensive of something automated taking over and so um remember the days Ed when you actually had to update your iPhone and you would actually back it up three times before you started updating it now you don't worry about it because there's that trust that gets built over time and so what we've done is we've actually made sure that customers have the option of having a human in the loop so if you do want to auto update your systems that you actually have the ability to make sure that that can be approved by you and it doesn't happen automatically uh but when you you feel comfortable you have the option of having that be completely transparent to you so that you can then start focusing on higher order bit items T you've used the word customers a lot we just have 30 seconds but just explain who the the market is here the users you're selling to our Market is every large organization midsize organization and small organization that's interested in making sure that they can protect the data centers from um from a tax uh from a cyber security standpoint at AI scale G so great to spend some time with you live from your garage we joke you're actually at the McLaren Center over in the UK we' got some nice cars in the background Cisco Executive Vice President and general manager of security and collaboration CH Patel thanks for joining us on the day of the announcement meanwhile coming up all eyes a kind of retraining upon crypto bitcoin's harving event it's just in a few days folks going discuss what to expect what it really is what the impact's going to be of course so much to be thinking about the risk assets as they have seen continued sell off at the beginning of this week and we start to level out see a rebound today in Bitcoin what does it mean ahead of this key moment for the in ecosystem from New York from San Francisco this is blue technology [Music] [Music] welcome back to Bloomberg technology Ed loveo here in San Francisco I'm Caroline Hyer in New York let's get you a quick check on these markets cuz actually well still the economic data comes strong oh there you are Joel nice to see you our floor manager just um shining a light on some of our Market check I want to go back though to the macro for a moment because before we get into the individual names I want to shine a light the fact that we have been seeing overall the NASDAQ on the higher side of things are up about 510 per or there or thereabouts we've also seen of course an introduction to the bond market just settling a little bit we've been seeing a bit of a sell-off we seem to be wanting to commit to some of the individual names that are on the move today so I'm going to shine a light on Netflix earnings coming thick and fast after the Bell up 610 of a percent we're expecting about a 14% increase in revenue for its fiscal first quarter Netflix Juggernaut faces a high bar though after $112 billion rally we' got emphasis on the downside after its numbers of course Indian key player in the technology space actually underwhelming when it it came to overall revenues we're looking at micro strategy though up more than 6% some of the individual crypto names doing well Ed why because crypto is bouncing on the day at least although we've seen of course some profit taking of late all right let's keep uh the conversation going around crypto and bring in Thomas perfumo cracken head of strategy uh toas I have been invited to not one but two Bitcoin harving parties tonight whether I go to either of them remains to be seen but it got me thinking that for many this is something that is interesting to be celebrated you know it's coming in the calendar for others they they focus on the supply mechanics of what it does to the market where do you focus your attentions so for me I think of the takeaways for the Bitcoin having falling into two different spectrums firstly it underpins why we believe Bitcoin is the soundest form of money there's a whole host of reasons why on the demand side things like Global liquidity 247 365 Market access permission permission list censorship resistant like all these nice qualities for why Bitcoin serves as a good form of money but on the supply side you know how reliably can you plan around uh a currency and Bitcoin because of the having you know that there's only ever going to be 21 million Bitcoin in existence and so on the second part of the the takeaway here is that this Bitcoin having in particular you know we we celebrate it every roughly four years but this one is the most symbolic in my opinion in bitcoin's history and even looking forward because at a time when you have people who are looking at their conventional currencies inflation interest rates and the economic environment that they live in they see this alternative form of currency Bitcoin and it's something that has this really crisp story this idea that as of tomorrow when the having takes place 94% of all Bitcoins that will ever exist will have been mined and less than 1% uh we'll see less than 1% inflation in the circulating supply of Bitcoin going forward so that's a really powerful story I think for people and why they're having is so important Thomas there will be a big section of our audience watching thinking what has this got to do with me is there a chance that they wake up and Global Financial markets the world has been changed by this Haring no the having in of itself isn't going to be a cataclysmic event we're not talking about a Rapture here uh but what it is doing is it's reinforcing The Narrative of Bitcoin as sound money and in our opinion the adoption of Bitcoin and of crypto takes time this is something that is a very Innovative technology it's very different from how people use money today and so this is something that's going to take place over five 10 years 20 years Etc and you're going to think of it as almost like a change in culture and a change in understanding of how people transact with one another and so when we think about this having in particular nothing super special but again like an important Milestone uh particularly in this time and age and we'd love to celebrate it Tomas I want to get a glimpse of what you're seeing in this unique position over at Kraken at the moment because yes the reason many have said that this harving is unprecedented is because where crypto has been priced at before where Bitcoin has been at all-time highs that hasn't happened before in the other times but there has been money taken off the table of late why has there been new money just trying to resettle when we have this risk occurrence we' had geopolitical tensions why did we suddenly see such a fall in price yeah so there's definitely a lot of volatility when it comes to bitcoin General I wouldn't say that we've reached any kind of Peaks so historically if we look at prior all-time highs you start to see these mass secessions of alltime highs so like 15 20 all-time highs within a single month uh on a day-to-day basis and that's when you see in volatility Peak to 100% or so with Bitcoin we've only seen a handful of all-time highs in the last month it is a little bit ahead of schedule versus the other three having events we've seen but nothing crazy or out of the ordinary yet what I like to think about when it comes to the price action is uh it's a momentous occasion you know people come in they see the price level they're like I want to participate and you you get a little bit of that momentum play but uh we still have a lot of new entrance coming in the space the Bitcoin ETF for example1 billion of a new net flow coming into the the cryptocurrency sector a whole lot of people are coming in signing up for accounts and buying Bitcoin for the first time so this is just something you have to kind of space out over the long term and you're going to have these ups and downs along the way more broadly how have you been thinking about that new new inflow into Bitcoin coming into other parts of the crypto ecosystem what's been interesting is perhaps in other altcoins we've just seen a churn a movement within it rather than perhaps money coming into Bitcoin and then going oh I'm going to play in the worlds of salana now what do you think about that movement coming from Bitcoin eth into the other old coins yeah these rotations uh EB and flow and it depends on the trend at the time and so uh when we see in 2020 for example we had that momentus occasion called defi summer so everyone was going and playing around with ethereum tokens and the reason was because you had the maturation of those applications that had been invested in back in 2017 2018 so they were launching uh you started to see the application and the network FS built up from there and then that led into rotation into Bitcoin Etc here we have the having event the US Bitcoin ETF as the catalysts for people getting interested and so Bitcoin comes first uh as far as other alternative currencies whether they're tokens or other layer ones like salana ethereum a lot of that's driven by whatever application exists that people are starting to really adopt early on and one of the interesting things in my opinion is that the last cycle back in 21 you had tens of billions of dollars come into the space to develop new projects and whatnot we're talking at this point about 3 years of maturation and so that investment cycle we kind of have these dark horses we don't know exactly what application's going to come out but we're really excited about it and some stuff that's proliferating right now would be things around like gamei in the crypto space so we'll have to to see from Bitcoin what where it goes come back it's been too too long Thomas pumo ever crack in his head of strategy we thank him for talking all things crypto with us now let's talk all things IPOs because we started to get a few more the CEO of IOD Brian leech is joining us straight from the New York Stock Exchange why have you decided that for your business model which is all about giving Cash Back Rewards when you're purchasing groceries maybe even your gas why is it now the time to show your technology Solution on the public markets thanks for having me we think it's the perfect time because our mission is make every purchase rewarding 60% of Americans are living paycheck to paycheck 75% are financially insecure we've given away 1.8 billion to help people make those ends meet we's ALS we've also gotten to a point in our company where we've built out a large Network and are beginning to see those Network effects we've had six straight quarters where we've been profitable on an adjusted eida basis cash positive net income positive so we feel it's a great time to come to the markets raise some money and invest even more in our platform one of our social media editors dear Martino poses a big picture question for you around Extreme Couponing she is a self-confessed IBA a user is that the story you're telling the street that amid economic difficulty or how consumers behave Extreme Couponing is coming back it's true that there are certain people who we like to think of as professional Savers Ed on our platform our directed consumer app has 50 million registered users many of them are proud extreme Savers however it's also important to note that we power the first ever uh manufacturer offer cashback program for Walmart for Dollar General for Family Dollar for Kroger and these are much more everyday purchases occurring from people with a lot broader type of background not all of whom are shopping to the sale they're encountering these offers as they're searching for products online as they're building a basket and we're able to move markets for the largest brands in the world so it's a combination but I do think that in environments that are like this one inflationary U as well as everyday environments it's always something that's relevant you know people shop for groceries 1.6 times a

week 87% of Americans use at least one coupon a year on their groceries so it's not a discretionary category and it's relevant in all climates you took a risk coming to the market at this moment and it looks like it's going to be paying off your shares indicated at 107 112 being reported at the moment priced at 88 so having marketed below that there's been real interest in your company tell us the marketing pitch now because you are very integral within a relationship to Walmart can you therefore get other big grocery St St practitioners on board can you white label for others out there at the moment absolutely Caroline we've already begun to build a a network with Walmart at the center they are strategic investors in ibata but we also have Kroger Dollar General Family Dollar Exxon shell and appcard which represents over 300 other grocery retailers using our Network to pull in rewards content on a white label basis we think that that's going to be a very Broad and attractive Network and it's really a network effect business the more of these Publishers sign up the more we're able to attract advertisers to bring offers in the more we're able to fulfill our mission on behalf of the end consumer which is to make every purchase rewarding Brian what's the iBot AI story that's right AI is critical to the future of iata we are really helping to create a Next Generation platform for what we call Performance Marketing meaning we don't charge for Impressions and clicks we only get paid when our clients sell a product they want to put the right offer with the right amount in front of the right consumer at the right time gone are the days of your grandmother's coupon this is not a one-size fits-all solution the level of sophistic ation we have is because 45% of our 800 employees are technologists and we've been doing AI for years using it to find personalization algorithms machine learning and we'll continue to invest in that Ed we want to be thank you iot CEO Ryan leech thank you so much meanwhile coming up while we're going to be talking to our company Ed who are we going to be speaking with the maven Clinic CEO Kate Ryder big expansion on a fertility program really important New York City conversation that's coming up next next car some stock market news yeah this is a company that you know we're just talking about IPOs there one that opo not long ago not more than a few years ago is thinking about actually going private 23 and me speaking with with JY of course the women behind this business up more than almost 50% reports that look she's not liking it being undervalued in the public markets we see a pop on the idea that it might be taken private this Bloom technology [Music] [Music] New York Tech unicorn Maven Clinic it's the largest virtual clinic for women and family health announced that it's expanding its award-winning fertility and family building program the company which was founded back in 2014 raised $300 million thereabouts investors including General Catalyst AOA Lux Capital to name it a few and we're pleased to welcome to the show Maven Clinic founder and CEO Kate Ryder for more and Kate you've got more than 2,000 clients using your product and I want to understand when you go to them and say you this is the benefit that you're going to Garner by offering this what is it um well you know clients right now are really interested in supporting their Working Families and so I think it's been you know covid was uh certainly a moment where Working Families were really stretched and I think in general Women's Health um whether it's fertility whether it's pregnancy menopause um is just an area that has been so under funded underserved from an experience standpoint that employers really lean in to support these Journeys and so they can do that with Maven so they can understand that they get Talent AC Talent acquisition they're able to have retention of gen Z and Millennial but are there any statistics you give clients like this is the return on investment you get when bringing in Maven Clinic oh yeah I mean fertility and maternity as a bundle are often one of the top health care costs that employers face and so with us we're a triple bottom line business number one we can reduce costs in one of the most costly areas of healthcare number too we can help attract and retain some of the most important talent I mean 45% of um of workers say that they really look for the fertility benefits and family building benefits at companies today to see how they're going to be cared for and number three from an equity lens and a Health Equity lens um you know employers can really lean in here and solve some of I think our our Health Care Systems biggest challenges when it comes to supporting um you know women and families on these Journeys challenges being where do I get this sort of advice how do I get it for both men and women and indeed how do I get the rights truthful advice the business that you're building I mean boy since 2014 we have been through some different economic environments how is it going how are you seeing the adoption in the US and indeed from International businesses yeah well we grew our revenues to 95% last year and so even though it was a year where I think there was a lot of uncertainty about the macroeconomy um this is still an area where employers and health plans um were really leaning in because again there's just so much catchup to do um 12% of Our member base is international and so that's another big big area that we're seeing continued growth in uh you know the the a multinational is looking to bring again that Equitable lens to family building and across the world it's you know it's really different whether you're in a public system what the regulations are and so how do you how do you bring that same access to everybody and so you know we work we were um we were we were talking with our our client Amazon about our Global uh family building benefit with them in our partnership over the summer um and so we we work with a lot of companies like that having birthed in the UK and the US I can attest they're slightly different talking about your business therefore like we just had i b on they've just gone public how much are the companies that have invested in you the VC saying hey you are doing so well with a 95% increase in Revenue last year that you able to say look we're almost profitable we should be going public or you're like no no wait wait this out well uh not this year um but you know I think that it's certainly where we we would like to end up um you know for us we're really lucky to have a board that really sees the long term and so um we're certainly headed in that direction but I think uh we there's just there's a lot of products we're still launching at the moment and you know the markets are different these days than they were three years ago and so um we would you know we're holding ourselves to a very high standard um so for when we get to the public markets we'll continue to grow um versus I think what's happened in the past with some companies where after the six-month lockup ends you know the the share price kind of Falls and what about competition competition I mean honestly our biggest competition is still the status quo um you know they're they're it's hard to change a c build a category and change mindset and um you know that's what we've been working on for 10 years and I feel like we're 5% of the way into the product Road Mount but but yeah I would say status quo is is the biggest uh the biggest challenge and and it's something that uh you know as we continue to see more brand awareness and more celebrities and more um member stories around why fertility benefits matter why menopause pregnancy Pediatrics um you know that that's that's that's really helpful takes a while to shift a mindset we thank you for coming on talking all about it as no new products get rolled out mman Clinic founder and CEO Kate Ryder we thank her Ed what for you got okay coming up in the program Tik Tok heading to its Moment of Truth in Washington we'll have all the details on a Desto band bill that's coming up next this is Bloomberg [Music] [Music] [Applause] Congress it's on Fast Track to approve a bill aimed at forcing Tik tok's Chinese parent that's bite dance to divest its controversial ownership stake or indeed you know we'll have to see an exit of the business let's bring in Bloomberg's Alex binker for all the details now this suddenly injects new life into this conversation we're having a lot a month or so ago the house is looking at fast-tracking it by tying it to well relief or money towards Ukraine and indeed towards Israel correct that's exactly right we had a prior bill um that did basically the same thing that this one looks to do pass in the house already it ran into some push back from Senators who thought that the timeline for divesture was too short so what house Speaker Mike Johnson has done is basically put this in a wrapper with really key items like aid for Ukraine and aid for Israel things that appeal to both sides of the aisle and made some of those changes they've extended the deliberation period for a divesture to kind of satiate some of the concerns from Key Senators so we do expect this to be voted on on Saturday we do believe that this will pass the house again in this wrapper of bills and in a uh very DC fashion the Senate and Joe Biden said that they would both quickly take this effort up if it passes the house on Saturday I I I think there's just still so many questions on how this would work whether it's next month next year you make a really interesting observation in your Tech daily that the concern is Chinese interference which as you write is largely hypothetical at this point so Tik tok's faced with a divest or ban you and I reported last month the month before that the company's position is we're just not going to do it that's right they will push for a legal challenges before this becomes a divesture situation B Dan certainly does not want to actually carve out this really valuable asset and I do expect that in that yearlong um almost a year that they would have to fight this or figure out some kind of Separation they will be fighting tooth and nail we've heard from the company that they plan on leaning into a First Amendment argument I'm sure that both them and their supporters will be picking apart the specific language of the bill because at as we wrote back then this Still Remains a really unprecedented situation to have such a large consumer tech company actually forced to separate uh from its owner by any country uh particularly the us where the social media industry kind of has its its home in Tik tok's competitors and what if there's a ban you site some data for the center for economic policy research that you'd literally have to pay college students as an example to delete the app from their phone that's right they say $59 a month or over $700 a year would is what you'd have to pay them that's no small dollar amount for a college student but this ban is actually not going to be paying its users to relinquish Tik Tok it's almost a payment in kind Congress is saying we'll protect you from this kind of invisible existential threat of China and their potential influence or data hoovering capabilities uh so I do expect that folks could be pretty upset but with the new deadline there's a important distinction in timing had the original bill passed along the same time frame had Senate passed the bill and Biden signed it into law that deadline for divesture would have come right around the election with this extension and timing this actually pushes that decision into the next Presidential Administration past the election and I'm sure that politicians don't want to be making the argument right around election day to their important young constituents why they shouldn't be you know looked at negatively if they in fact voted to pass this bill Alex binka bringing it to us and in her Tech daily go read it we thank you so much meanwhile that does it for this incredibly busy edition of BL technology Ed yeah lots to recap in the podcast you know where to find it on the Bloomberg platforms as well as on Apple Spotify and ihart from New York City and San Francisco this is Bloomberg technology [Music]

2024-04-20 07:07

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