Meta Earnings and Musk In Twitter's Office

spots for Facebook and Instagram we'll discuss. Plus. Elon Musk is in the building at the Twitter office where on Friday he will address the staff. He reported with plans to cut by more details on a Bloomberg scoop in a moment, and it is one of the biggest ipeos of the year. The CEO of Intel self driving startup Mobili tells us about the law quote ahead all of that in a moment, but first I want to dig a little deeper now into Meta's results with Jasmine Edinburgh,

principal analysts at Insider Intelligence. Jasmine, of course focusing on on the forecast and also profit. Quarterly profit being cut basically in half. I mean that's a big number for a company as big as Meta. Yeah, and we're also coming up on Meta's one year anniversary of the name change, and what I would start with is that Meta today is a far cry from what Facebook was just one

year ago. As Facebook, the company was able to generate double digit growth every year, revenue growth every year, and last year it posted about thirty seven percent revenue growth. Now it had two consecutive quarters of revenue declines, and an insider intelligence our brand new forecast shows that Meta is going to post its first ever year over year declar line and worldwide AD revenues for the full year two as well. Now, let's talk about the bets that

Meta is making. The two big ones, the shift to reels and also the metaverse. Is there any evidence that either of these are actually paying off well? Zuckerberg's bet on the metaverse is clearly jeopardizing the short term health of its business. I will say that there is, you know,

some business interest in the metaverse. We have seen some activations from some businesses, but those activations are also coming out of experimental budgets for the first part, for the most part, which means that they're also potentially able to be cut um if these macro ect economic conditions weaken. Now, Reels is where Facebook and Instagram should really be focusing

on right now. It is where the competition within social media remains, and Reels is still lagging very far behind TikTok Um, and it needs to catch up in order to be able to continue to grow its ad business. Now, let's talk about the broader changes happening to the ad business. You've obviously got met at hitting back at Apple for the changes that Apple is making that are impacting not just Meta but other social media companies. How much bigger

of a cut is Apple going to get? And how much smaller of a cut is Facebook or Meta going to get? And what does that mean to you over the longer term? Yeah, I mean the effects of Apple's privacy changes continue to plague all of the social platforms. We have seen that in multiple earnings that have already come out. You know, Apple in some ways maybe benefiting

it's also launched its own ad business um. But you know, these companies really need to work to develop and deploy effective solutions for ad attribution if they want to keep up and continue to grow their businesses in this new environment. Twitter was supposed to report earnings today, didn't happen That

was at least the estimated date. Of course, now we have Elon Usk going into Twitter today with the kitchen sink a very powerful metaphor there there are we're reporting that, uh, you know, he's planning to cut of Twitter's work force. What do you imagine happens on Friday? Well, Muska has every reason to want to close this deal by Friday.

If it doesn't close, of course, this this case goes to court, and it's likely that that Twitter will win anyway and Musk will be able to avoid some of the reputational damage that might ensue if if the case actually goes to trial. Now a must own Twitter is likely going to result in even more chaos. We already know that the employee morale is low. Some employees have left, Others are really concerned about massive layoffs, and that is a valid concern now in terms of how that might

affect its business. You know, even if these massive cuts don't take place, or don't take place immediately, just the fact that this idea is being floated around by muff It's might be enough to spook some advertisers as well. You know, advertisers want to spend their ad dollars on platforms that they view as stable and right now that

certainly isn't Twitter. What's your sense of what these you know, potentially people at Twitter do that he seems to think are expendable and if the platform can be run with you know, the necessary oversight with two thousand people. So I think where these cuts take place, if they do take place, will give us a really good indication of

what Musk intends to do with the platform. If, for example, he reduces head counts significantly in the ads division at Twitter, it's an indication that he may be making good on his promise to reduce Twitter's reliance on advertising. He could potentially cut in the content moderation division, which could prove or show that he intends to loosen some of those content moderation guard rails, which is also something that he has been really vocal about. Okay, So given all of these,

massive's got major evolutions changes happening a Facebook. You've got, potentially on Friday, Twitter becoming a private company. You've got Apple moving in and trying to take a bigger cut of social media ad revenue. You mentioned how different Meta looks today than it did a year ago. How different does the social media industry look a year from now than it looks today different. I actually believe that the time is right for some more disruption in the social

media industry. I mean, TikTok was the biggest destructor to UM usage and to to revenue in the social media landscape for many, many years. But we're seeing now that there are some other social apps that are starting to bubble up and capture the attention of the coveted gen Z audience. And I believe that we'll start to see even more of that in three and UM. Have these established social platforms really continue to to scramble to keep

their audiences and continue to grow their businesses? I wonder what it means for Snap. We heard from Snap CEO Evan Spiegel at the Wall Street Journal Technology Conference. He blasted the metaverse, saying something along the lines of the last thing I want to do when I get home from work after a long day is live inside a computer. Um. You know there are two questions in there, A what

does this mean for Snap? And be this this? You know? Uh, you know, infatuation that some brands might have with the metaverse just just dry up, especially as we go into a pronounced economic downturn. Yeah, so Snap has positioned itself as anti metaverse for for quite some time now. It's also been really susceptible to a lot of the challenges that are plaguing all of the social platforms. We saw that in its Q through Q three earnings just last week.

Part of the problem is that Snap is considered a less essential platform than say, Meta, although Meta is experiencing cuts as well. Um And, but it's easy for advertisers to justify pulling ads and and pulling budget from Snap. And it certainly doesn't help that, you know, it has staked its future on augmented reality, which is an even more experimental format for a lot of advertisers. Snap does have something um that Meta and Twitter have really struggled

to articulate, and that is a long term vision. Um. But having a long term vision is not really a way to help it in the short term. And Snap really has to turn things around now if it wants to make its vision a reality. Do you think augmented reality is more likely? Are you more optimistic about the future of augmented reality than virtual reality? So? I think augmented reality holds a lot of long term promise, especially

among the audience that is using Snapchat. UM. We are already seeing young users communicate with each other UM and entertain each other through a our filters. We are seeing some brands and some consumers leaning to a R as a shopping tool, and I believe that that will continue to grow. I don't necessarily believe it's going to reach mass adoption, but I do think that it's becoming more of a utility and will continue to do so over

the next couple of years. All right, Jasmine Emberg Insider Intelligence, Thank you, as always Jasmine for your insights here. Obviously lots to continue to watch. Questions are looming about Spotify's profitability after its earnings report subscribe to growth topping estimates. But it's another one of the many tech companies being hit by a slowdown and ad spent sending shares down

more than nine percent. Bloomberg's Ashuley Carmen cover Spotify for US. So, actually we're talking about Twitter and metas struggles Snap as well. Their struggles. UM, given the ad crisis earlier, how is that impacting Spotify? Yeah, spot f I said that actually, it's AD revenue also grew this quarter, but more slowly. Than an anticipated and it's blaming that on the broader macroeconomic issues that we're seeing. So what kind of troubleshooting

are they doing? What are the solutions? It's tricky, I mean, so daniel A, the CEO, says that, and this is true, ad revenue doesn't represent a huge portion of their business. They're obviously mostly a subscriber based business. So obviously they want to keep growing those premium subscribers, which they also

did this quarter, beating analysts expectations. But at the same time, they really need to keep doubling down on that podcast business because that's where they say they're really benefiting from this advertiser money. Apple seems to be the enemy and the conversations about social media advertising, and I wonder where

where does Apple Music, Spotify's main competitor, fit in. Yeah, there's been a couple of interesting developments that are Apple related this quarter or I guess for this past quarter in Apple world. So first off, Apple Music raised his prices this week, and of course daniel Luck was asked about that on the earnings call, and he says, they're going to have conversations about raising their prices. In turn, they just have to go to their label partners and

have those conversations. And then also the Spotify came out kind of They've always been talking about Apple and antitrust and kind of the app store fees that they have to pay, And recently in September, Spotify launched audio books on the platform. And originally you could, I mean it was a bit of a pain, but you could buy audiobooks through the app. You would get the price and the purchase link email to you, so in that way it was kind of going around Apple's app store fees.

But now on iOS you can't purchase them at all. So Spotify came out saying, you know, they're really unhappy with this experience. And on Google you can still kind of have that odd emailed system, but at least you can buy audio books. What is next for podcasts and audio streaming? You know, I think there are still some questions that remain about just how big the podcasting advertising

market really is. Yeah, so we've seen a lot of these big players like I heeart Media and Spotify and Cumulus really try to bolster their podcast businesses and focus on programmatic advertising. So really bringing in these big brands, the Coca Cola is the Geico's and get them to spend in podcasting, an industry we typically think of as like the cast firm, mattresses, and the direct response advertisers.

So that's really what these big companies are focusing on, is bringing them into the mix, even as the economy maybe is taken a downturn. Can you give us the latest on Daniel K. Moore broadly? I mean, it feels like just yesterday he was, you know, making a bid for the Arsenal football team, and now his company is going through some significant struggles. What has that meant for some of his other aspirations? You know, I'm not totally

sure how it's it's changed his other goals. I will say that he doesn't in the earnings call project any sort of concern about or any sort of struggles for the company. He really sees it as, hey, we've told you pursuing podcasting, we're pursuing audiobooks. We need to make some necessary investments into those space in order to eventually continue to grow and have a better gross margin. So

he views this as like charting the course. Obviously, investors have kind of turned on the company though, all right, Uh, well, more to write I'm sure more to the story. Bloomberg's actually Carmen, thank you for weighing him coming up our conversation with Mobilized CEO and founder on the heels of the first day as a public company. That is next. This is Bloomberg Intel's Mobile I unit, which developed software and self driving technology, just started trading on Wall Street.

Bloomberg's had Ludlow caught up with Mobilized CEO and founder. I'm non Shasha earlier. Take a listen. Our plan is to view the spectrum from driving assist to to fully autonomous driving, say robotaxis, as a spectrum of solutions. And we started with a base solution, which is, you know, our our silicon connected to eleven cameras surrounding the car, seven long range and four parking cameras. All this information is being used for an eye on, you know, hands

free driving. And then through a modular expansion by adding active sensors to create eyes off solutions with expanding operational design domain. So for example, you know, you start with this camera built at the front facing ladder, you can enable eyes off autonomy on highways, add corner radars, you can enable lane changes and light traffic. Add imaging radars, you can enable lane changes and condense traffic unprotected turns. Added tell operation you get a robotaxi. So it creates

a spectrum of solutions. And we have been already shipping this based system. We have already fifty cars already with the based system. Right, how critical is China to the growth story if your business? Do you see the business growing with pace in China which is a really important global auto market. Now, wonder when we look at China that there were two attractive things. That one is the

market itself. Now, market share in China has been going over over the year substantially, but more importantly, we found that China is slightly more take forward uh than than the rest of the world. And and we we took advantage of putting our latest innovation starting in China, the system that I mentioned before with eleven cameras that's called Supervision already shipped in China and then generating interest with

other o e m's Western o ems. And in the past five months we started getting significant attraction with the six o EM is already designed in to this to this basis and called the Supervision going forward from three or five. What about doing business going forward? We know about the trade restrictions when it comes to technology in China, do you see the need to build new partnerships in that market? Now we have, we have multiple partnerships in

that market. We are less concerned about our type of product, Like the i Q chip is not a supercomputer. It's not programmable. You know you're gonna put it on a data center and write any code you like. It's really it's really purpose built to sit in the car with mobilize the code. So we don't see our chip at

the forefront of you know, export controls UM. So we are focusing on, you know, building a great products, creating partnerships, using the tech forward approach to to then migrates to to outside of China, and it's it's proving itself quite successfully. I'm not you and I have been talking about this for years now. Do you really see a business where mobile i makes money from true autonomy? When does that happen?

When does mobili start making money as a service provided not just a maker of chips and system on chips. I think what has changed in our view in the past five years. Let's not change, but more new ones is that now when you talk about autonomy, is not just robotaxis. Now there are companies competitors of hours that are focused only on robotaxis, but we see something much more new ones and what I mentioned before, these kind of autonomous blades as you go from our base system

and adding more active sensors. So a robotax is just one end of a long spectrum of solutions and we are working on it. Means where at the final stages of certification and mollegation of our ROBOTAXI. We have about ten pocs with public transport operators of next year that we made public a few a few months ago. We have a fleet of about one hundred vehicles dedicated for those pocs and the purpose of those pocs is to start building a business model. Business model that makes sense

for us. We don't want to be CAPEX heavy. We want to go forward with this service idea with partners where we supply the self driving system or the self driving vehicle and our partners will take you. Now we'll do the service themselves, could be using our software to be licensed to them, but they have the expertise, the financial know how of how to manage fleets of vehicles. It's not an area that we want to to be active in mobili CEO and founder there with Bloomberg's at Ludlow.

You can catch that full interview at Boomberg dot com. Welcome back to boomer Technology, Emily Chain in San Francisco. I want to get back to matters. Results are at what Low has been listening in to the call at what are we hearing? Yeah, there's a lot of explanation about why costs and operating expenses are going to be higher in the near term before they kind of real look at the budget in the future. They're talking about dramatically slur slowing the rate of hiring. In the third

quarter they added about thirty seven people. Despite what we heard last month right about Zuckerberg really pushing to cut costs, there's going to continue to be infrastructure investments in AI why well meta Previously, Facebook has always said it needs to invest in AI to improve the algorithms that power the core Facebook platform as well as that transition to the metaverse. And this one's for you. This jumped out

and me. I've been blogging about this on the Bloomberg Top Live blog, Instagram and WhatsApp now each have two billion users, and when that headline hit, the market didn't do anything. We're still down more than fift and after hours. You remember, right when that was everything. How is Instagram going to drive growth in the future, How are we going to monetize WhatsApp? I haven't heard anything about that in ages and yet Zuckerberg in his prepared remarks kind

of leads with that. I think it's very telling about the story they're trying to tell right now. Indeed, but of course a lot happening under the hood. Ad Ludlow, thank you. Meantime, Meta criticized Apple over new changes to its app store, which takes a cut of social media

advertising revenue or mark eerment. Of course covers all things Apple mark This has been happening for a while, but remind us how these changes, you know, what the intention of these changes was, and how they're working in practice. So two years ago, Apple announced the feature called a

t T or App Tracking Transparency. And what this does is it throws up a pop up two users before it'll before the system will allow an application to track you for advertising based purposes across different applications and different websites and So from Apple's perspective, all this pop up does is puts that permission in the hands of the user.

It sounds pretty simple, but from the perspective of Meta, of Snapchat, of Twitter, of other social media platforms, that makes their advertising a lot less powerful and makes it so advertisers are going to be hang a lot less and for Facebook and these companies to make a lot

less money. And it's interesting to me that Facebook went on the offensive yesterday regarding the latest changes to the app store rules right ahead of their earnings, which as we see right now, are fairly disappointing to Wall Street

right and investors and such. But from what we understand from Meta and from other people we've spoken to, the latest string of changes related to Apple wanting a thirty percent cut or a commission on boosts, which is a type of advertising within Facebook and other platforms, it's not really going to have a material impact on Meta at least. What's our sense of how much these Apple changes specifically are impacting let's say Facebook or Instagram and how much

Apple is benefiting from these changes. So, from what we've seen so far, in terms of a financial standpoint, Apple really is not benefiting from these changes. Uh In any way, the company is working on its own new advertising push. You may have seen in the app store now they've added a couple of new ad slots, but that doesn't really impact Meta. It wasn't like Meta was previously able to advertise within the app store. Apples also going to

bring advertisements, I'm told to the Maps application. That really doesn't, you know, impact Meta either, because Apple is going to be the only provider of ads within that platform. Right, so Apple is not really benefiting here, but Meta certainly losing. I remember a couple of years ago they threw out a ten billion dollar estimate related to the impact there. Some people said that ten billion dollars actually is related to the Reality Labs their VR unit, right, And you've

seen the losses there are piling up. So it's not exactly cut and dry how much these companies are losing there, it clearly is a significant financial impact. Last night was actually at a conference in Laguna Beach, and Craig Federigi, the head of software who was pretty instrumental in the development of a t T and other privacy features, was that was asked about this and he said they really didn't consider or the financial impact this would have on

other companies when implementing the feature. Their standpoint clearly is from a user perspective, throwing up that permission sheet. Well, you do have the skeptics who might think, well, does an Apple have all this data and are they going to build their own you know, social you know, advertising juggernaut on the back of, you know, all of this information that they're now preventing other companies from having access to.

That's an extremely fair point. I made the same point in a recent calm for power On and by the way, anyone listening to this should subscribe at bloomber dot com slash power on. And that is true. They are building and advertising juggernaut themselves. They want to push ads eventually to an ad supported tier of TV Plus. They could theoretically put ads in iTunes and Apple Music across many

of their services. The app store is getting more advertisements now, Apple Maps, like I said, it's going to get advertisements. They throw ads in between uh, you know, plays and the MLB in ation for the TV plus app, right, So clearly they are pushing there. Clearly they are collecting data, right, So Apple is collecting data on users. They say however, they are following the same protocols they are requiring from

developers too. But that is definitely something to take a look at and definitely something will re examine once these new advertising slots hit Apple Maps, TV Plus and other Apple software in the future, and we'll see the difference in the technology they're using between Meta and Apple and if Apple really is taking a different standpoint and using

different methodology. They say they are everything we've seen so far as that they are, uh and at this point we have no reason not to believe them, but clearly it does seem a bit hypocritical on the surface. Okay, Mark German, as always, thank you. I want to continue this conversation now with Techonomy founder David Kirkpatrick, of course,

who wrote the book on Facebook back in the day. David, when you look at these recent amounta numbers you hear about the changes that you know, the impact at a company like Apple is having, doesn't just boggle your mind. How how different Meta is today than the company that you started covering what now fifteen years ago. It's shockingly different, but it's shockingly different than it was a year ago.

As Jasmine Edward was saying earlier, on your program. It is amazing to think of the essentially steady decline this company has experienced in a lot of different ways ever since they changed their name and declared that they were preparing for the metaverse future. Um. It is really studying, though, looking at what's happened today. I mean, the stock was down six but before today's action, and today since this morning,

the stock is down more than in one day. And at last I checked after hours, it was still declining. It's it was a hundred and eight something just a second ago. You know, this is a company who stock was three eighty something fair very recently. Um, it is just stunning. I mean, but it's it's. I think a lot of it can be traced to essentially an absence of governance that they just Most companies have a more collaborative managerial approach, where a board actually gets to tell

the CEO what they think. That is not the case here. An absence of governance or an over ambitious, overreaching Mark Zuckerberg, well, obviously those two things go together. Mark Zuckerberg is a brilliant leader and a great product person, and I think really a genius in many ways. But he is obsessed with the wrong thing. One of the other things that Jasmine and Bert said that I thought was really interesting was this idea that a lot of social media innovation

is under the way right now. But so what did this company do Instead of trying to innovate more in social media? They decided to innovating something completely new. If they had been spent all this money they've been spending on the metaverse to try to come up with new social media products, especially at a time when they're not allowed to buy anything by regulators, that would probably been a way more advantageous approach and much more acceptable to investors.

Got to ask you, since we saw Elon Musk walking into Twitter headquarters today with a kitchen sink, and Twitter could be a private company in forty eight hours, Um, how do you think Elon Musk and Ducker Burke who actually I don't you know, they're they don't like each other very much, but interesting, UM, I'm curious how you compare their approaches. Well, you got to give Musk credit for having a sense of human I mean, the kitchen thing could be but is this is this in good taste?

Not that you know he's known for that, Especially they're going to lose their jobs. Well that's true. I look, I'm not saying it's you should make light of the fact that possibly thousands of people on Twitter are going to lose their jobs. I absolutely don't think that. But you know, business is generally too self important and has too grave of a view of itself. And this is an aspect of Elon Musk that I actually kind of appreciate.

He tries to just be an ordinary person going about his day, you know, changing the world and buying companies for forty five billion dollars. So you know, it is amusing, you can't deny. He was an interview in the Financial Times over the weekend where he was asked what are you doing? And he said, aren't you amused? That was his response. He wants to amuse us. And look, it is at the cost sometimes of some serious people that have real consequences. But on right, and it's not just

the people which are really important. What about public discourse? Are you at all concerned that, like the future of public discourse is not a joke and shouldn't be uh treated by a joke? Right, it's impossible will not to be concerned. But we really don't know what he's gonna do. He said so many different things. A lot of them are impractical. Some of them, as I've mentioned on the show before, are appealing to me, like giving genuine identity to users. UM. I don't view it as a potential

unmitigated disaster that Elon Musk might control Twitter. It sounds like an idiotic disaster to lay off se of the employees, because I can't imagine the company could continue operate responsibly if that were to occur, And I honestly don't expect that to happen. It's the kind of thing he says, shooting from the hip. Uh, you know, we'll have to watch. You know, the Twitter is a company that needed radical surgery. They're certainly going to get it. I don't think any

of us can really know what happens next. Even it's all gonna all gonna sink in over time, David, we are not gonna let the sink Hans go. Um. David Kirkfadrick to Economy Founder, as always, good to have you. For today's Crypto report, we're diving into the investing behaviors of women. A new report finding that one in ten women are choosing crypto as their first investment. This is part of Block five's Real Talk survey and here to discuss block by co founder Flori Marquez. So, Flori talk

to us about the big takeaways here. There were some some surprising results. Hey, Emily, it's great to see you again. And there were surprising results and some are good and some kind of signal to me, what are things that we need to continue to work on. But the key takeaway is that women that are invested in crypto are

resilient in the spare market. However, we did also see there was a generational gap amongst women who feel financially secure in their investment strategies and those who do not, And specifically we saw that that gap was between millennial women who tend to feel more financially secure and then

Gen X tends to be the least financially secure. And so I think what's important about these surveys is we're looking to understand the differences between different behaviors so that we can really get to where is the pain point and how can we try to solve that? And so high level, there's definitely a gap. Yeah, go ahead, Well exactly, it's like, well, what are you going to do? With this information. Now that you have this information, I mean it sort of makes sense that gen xers might feel

less secure if they have more responsibilities, right, definitely. And I think there's also just a generational gap just in terms of understanding of technology, right um, depending on what technology was available when you grew up, with your comfortability with different apps. And so I'm a huge believer in really understanding your consumer base. And in order to address a problem, you have to understand that not all consumers are the same and people need different types of information

presented to them in different ways. In order to get comfortable with crypto and so a block five we focus on three key areas. The first is accessibility, and that's everything from how is your app designed, what is the experience like? All the way down to what what is client success like? Can you pick up the phone and talk to someone if that's what you need to feel comfortable. The second is really understanding through data, which is what we're diving into today. You can't solve a problem if

you don't really understand what's driving it. And the third is leading by example. I really believe that you can't be what you can't see, and so I think as a woman, we have to be out here talking in the open and really making this industry a lot more approachable to people who have historically been excluded from financial

services investments. And then crypto well, speaking of the industry, obviously a lot has changed with the crypto crash, and I'm curious how that's changing your business model, specifically the institutional lending market. How much has Block five's role in that market change, especially given some of the big collapses that we've seen, and how is how is your role in it evolving. So one of the things that came out of this summer is a couple of things. There

was a shift in the market dynamics. So previous to the events of this summer, it was really a borrower's market, and now that the activity is really concentrated on the few players that are left Block Fine included, it has become a lenders market. But I think one of the biggest things that comes out of this summer is really the entire industries approach to risk and up blocked by. We took major steps in terms of educating the clients and the ecosystem in order to make sure that people

truly understand what the risks in this platform. Him and I also believe that you do need robust risk management frameworks if you want to be a regulated entity. And so the three things that we did where we increased our public disclosures on risk management um our c r oh is out in the open much more. He hosted a Reddit a m A and lastly, UM we continue to release our quarterly financials, including our overall risk exposure on our website. And so we're definitely in the early

stages for crypto. And I've said this for a long time and that much more maturation needs to happen, but we are committed to listen, to learn, and to continuously improve. All right, Floria Marcus, co founder of block always got Block five. Florie, always good to have you here. Thank you for stopping by coming up a sneak peek of my studio. One point, I sit down with door Dash CEO Tony Shoe talking about the future of the gig

economy and so much more. This is Bloomberg. After going public at the height of the pandemic, door Dash is dealing with its first major economic down term. Shares at the food delivery giant are down some sixty this year. I spoke with door to CEO and co founder Tony Shoot about how the company is navigating the headwinds of change. It was certainly very exciting. It was exhilarating. You know, it was the first time that you know, our company went public, the first time that I had ever undergone

any of those types of experiences before. But at the you know, in the back of my head at you know, it was that saying that you're never as good or as bad as they say you are, and so just remember that. So tease that out for me a little bit, because the big question is how much do customers keep ordering out in a high inflation environment. How much long

term you know, sustainability and growth is there. Really, Even though covid is now effectively sustained and we understand how to live with it, customers are continuing to order Those that joined us during the pandemic, they're still ordering out about the same rates as those who joined us before the pandemic. And that's because eating out and getting things

delivered are pretty complementary. On the second point around inflation, you know, I can say that in the last sixty years and looking at the data, spend in restaurants and in grocery have only declined in two of those sixty years, including high inflationary times much higher than what we observe today.

And so what I think I take, um, you know, solace in even though I see the fact that there is high inflation, is that customers are going to continue spending on food, and our job is to bring greater and greater affordability. More broadly, the economy is in a tough position. Your competitors have announced layoffs and hiring freezes

and slow downs. Is door dash considering any of these, And I think we've been fortunate mostly because most of our investments that happened during the pandemic really were meant to build new businesses, and those new businesses have continued to grow. New businesses, you know, beyond restaurants in categories like grocery, convenience, um or retail, new businesses overseas. You know, we announced a large acquisition Involts where that really helped

double our overall addressable market to seven million people. New businesses and building an advertising business new businesses, expanding our services and building a platform to help businesses build their own digital operations. Do you see doortosh is more of a super app of the future or is it something different? Well, I see doortash as really solving two problems. You know. Problem one is how do we bring incremental demand to all the physical businesses as they kind of figure out

their own digital in house capabilities. And the second problem we're trying to solve is bring tools to these businesses. There's still a lot of competition and delivery. Who do you think survives the delivery wars? Who doesn't and why? Well, delivery is a scale economies game. You know, at the end of the day, you can survive even doing deliveries. From a singular story, you know, there's still mom and pop pizza shops and Chinese restaurants that do their own delivery.

Do you see door dash as a challenger to like Walmart, Amazon, Well, I see door dash um, you know, as a champion of local businesses and physical businesses. I don't think that a world in which we just get what we want to buy or consume for a few places is a world that again is as worth enjoying living in it. For our job is to make sure that all of these businesses, all of the millions of physical businesses globally can continue to compete. I do a lot of door.

Dash helps me be a working mom. Whenever I interview you, I get pings from dashers and some of them say they don't get paid enough. Some of them seem pretty angry. What's your response to them. We want the local economy to grow and to thrive. That includes Dashers. We have three million Dashers that come to the platform every single quarter, and so it's really important to me what they say. And it's in fact why you know the company myself included.

We still Dash do deliveries, in other words, once a month. You still do deliveries once a month. That's why we have a Dasher Community Council that we started three four years ago. Now, I want to see one of your memos after a delivery. Are you like sending notes? I'm texting, you know, it's not even after the delivery. I'm texting, you know, not texting while'm driving, but texting after after I complete the order from your deliveries? What have you learned? Everything?

All of the details, everything from you know, pay considerations um UM, everything from um operations at a store. You know which stores are a bit faster in their operations or more consistent, Which stores are are less consistent? Where do you find the last parking space in downtown San Francisco? UM, all of these details matter. They matter for efficiency, they matter for driver pay, they matter for merchant earnings. And so as a result, you know, what I say to

dashers is please continue to talk to me. I'm just Tony at door Dash, and we're always trying to, you know, make things better or we're not saying that we're perfect. But when we look at UM, you know the data that we've collected, you know, the average dasher is making an hour nationwide when they're on, when they're doing deliveries,